Question 1

Can I use DSCR for a primary residence in Los Altos Hills?

Accepted Answer

No. DSCR loans fund investment properties only. You need conventional, FHA, or jumbo financing for homes you'll occupy.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional requires 620 minimum, 740+ for best rates. DSCR typically needs 680+, with some lenders accepting 660.

Question 3

How does DSCR calculate qualifying rental income?

Accepted Answer

Lenders use current lease agreements or appraisal rent estimates. Monthly rent divided by total housing payment must exceed 1.0.

Question 4

Which loan type closes faster in Los Altos Hills?

Accepted Answer

DSCR often closes quicker since lenders skip income verification. Conventional takes longer with employment checks and tax return reviews.

Question 5

Can I refinance from conventional to DSCR later?

Accepted Answer

Yes. Many investors refinance into DSCR after buying with conventional, trading lower rates for simpler documentation on future purchases.

Conventional vs DSCR Loans: Choose the Right Path for Los Altos Hills Real Estate