Question 1

Can I use a DSCR loan to buy a house I'll live in?

Accepted Answer

No, DSCR loans are exclusively for investment properties that generate rental income. You must use conventional or other financing options for primary residences in Portola Valley.

Question 2

Which loan type has better interest rates?

Accepted Answer

Conventional loans typically offer lower rates for qualified borrowers. Rates vary by borrower profile and market conditions, but DSCR loans generally carry slightly higher rates due to their flexible qualification standards.

Question 3

Do DSCR loans require any income documentation?

Accepted Answer

DSCR loans don't require W-2s, pay stubs, or tax returns. Lenders verify the property's rental income potential through appraisals and rent schedules instead of your personal earnings.

Question 4

Can I refinance from conventional to DSCR or vice versa?

Accepted Answer

Yes, you can refinance between loan types as your situation changes. Many investors refinance investment properties from conventional to DSCR to free up borrowing capacity for additional purchases.

Question 5

What credit score do I need for each loan type?

Accepted Answer

Conventional loans typically require 620-640 minimum credit scores for investment properties. DSCR loans may accept slightly lower scores but generally prefer 660 or higher for best terms.

Conventional vs DSCR Loans in Portola Valley: Which Fits Your Investment Strategy?