Question 1

Can I use DSCR for a property I'll live in part-time?

Accepted Answer

No. DSCR loans require the property to be 100% investment use. You need a conventional loan if you plan to occupy it at all.

Question 2

What DSCR ratio do most Redwood City properties hit?

Accepted Answer

Most well-priced rentals here run 1.0-1.2 DSCR. Anything below 1.0 requires more down or a rate adjustment to compensate.

Question 3

Does DSCR require an appraisal like conventional?

Accepted Answer

Yes. Both loan types require full appraisals. DSCR also needs a rent schedule or market rent analysis to calculate the ratio.

Question 4

Can I refinance a conventional loan into DSCR later?

Accepted Answer

Yes. Investors often refi into DSCR to free up DTI for the next purchase. You'll pay a higher rate but gain capacity to buy more.

Question 5

Which loan type allows more properties in Redwood City?

Accepted Answer

DSCR has no cap. Conventional maxes out at 10 financed properties total across your entire portfolio, regardless of cash flow.

Conventional vs DSCR Loans in Redwood City: Which Fits Your Investment Strategy?