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in San Mateo, CA
Conventional loans work for buyers planning to live in the property. DSCR loans serve investors who care about rental income, not W-2s.
San Mateo's strong rental market attracts both owner-occupants and landlords. Your loan choice depends entirely on whether you're moving in or collecting rent.
Conventional loans give you the best rate if you live in the property. Lenders verify income through W-2s, tax returns, and pay stubs.
You need a 620 credit score minimum, though 740+ unlocks the lowest rates. Down payments start at 3% for first-time buyers, 5% for repeat buyers.
These loans cap at conforming limits—$832,750 as of 2026. Above that, you're in jumbo territory with stricter requirements.
DSCR loans qualify you on property cash flow, not your tax returns. Lenders calculate rent divided by mortgage payment—1.0 or higher usually works.
You'll pay 15-25% down depending on credit and property type. Rates run higher than conventional, typically 1-2% above conforming loans.
No income docs means no employment verification. Self-employed investors and landlords with multiple properties love this structure.
Conventional loans require full income verification and lower rates for owner-occupants. DSCR loans skip the tax returns but charge more interest.
Conventional caps out at conforming limits. DSCR loans go higher—some lenders fund properties over $2 million with the right cash flow.
Conventional offers 30-year fixed terms at the best pricing. DSCR loans often price better on 5- or 7-year ARMs due to investor profiles.
Buying a primary residence in San Mateo? Conventional wins every time. Lower rates and smaller down payments save you thousands.
Buying a rental property with strong cash flow? DSCR makes sense if your personal income is hard to document or you own multiple rentals.
Some investors start with conventional on a house hack—live in one unit, rent the others. After a year, they refinance to DSCR and repeat.
No. DSCR loans only work for investment properties. You'll need conventional or another owner-occupant program for a primary home.
Conventional loans beat DSCR by 1-2% on rate. You're paying for the convenience of no income verification with DSCR.
Yes, but DSCR lenders scrutinize condo projects harder. Conventional has clearer approval guidelines for warrantable condos.
Absolutely. Investors often start conventional as owner-occupants, then move out and refinance to DSCR for better portfolio scaling.
DSCR can close quicker—no employment verification means less paperwork. Conventional takes longer due to full income underwriting.