Question 1

Can I use a DSCR loan to buy a primary home in Palo Alto?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, you need a conventional or government-backed loan.

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional lenders typically require 620 minimum. DSCR lenders usually want 620-680, but requirements vary by lender.

Question 3

Do DSCR loans check my tax returns?

Accepted Answer

No personal income docs are required. Lenders only verify the rental property's income against its debt payments.

Question 4

Which loan has better interest rates?

Accepted Answer

Conventional rates run lower than DSCR rates. Rates vary by borrower profile and market conditions.

Question 5

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Conventional loans generally require individual borrower ownership.

Question 6

Are Palo Alto rents high enough to support DSCR approval?

Accepted Answer

Palo Alto rents are strong but prices are high. Run the DSCR math carefully — we can pull comps before you apply.

Conventional vs DSCR Loans in Palo Alto