Question 1

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

Accepted Answer

No. DSCR loans are exclusively for investment properties that generate rental income. You must use conventional financing for primary residences or second homes in San Bruno.

Question 2

Which loan type has better interest rates?

Accepted Answer

Rates vary by borrower profile and market conditions. Conventional loans typically offer lower rates for well-qualified borrowers. DSCR loans carry slightly higher rates due to their specialized nature.

Question 3

Do I need perfect credit for either loan type?

Accepted Answer

Conventional loans require minimum 620 credit scores. DSCR loans often accept scores as low as 660-680. Neither requires perfect credit, though better scores improve your terms.

Question 4

How much do I need for a down payment in San Bruno?

Accepted Answer

Conventional loans allow 3-5% down on primary residences, 15% on investment properties. DSCR loans typically require 20-25% down for all investment purchases.

Question 5

Can self-employed investors use conventional loans?

Accepted Answer

Yes, but you'll need two years of tax returns and stable income documentation. DSCR loans skip personal income verification entirely, making them easier for self-employed investors.

Conventional vs DSCR Loans in San Bruno: Which Mortgage Fits Your Investment Strategy?