Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

No. DSCR loans are investment property only. For a home you plan to live in, you need conventional or another owner-occupant program.

Question 2

What DSCR ratio do lenders want to see?

Accepted Answer

Most lenders want a ratio of 1.0 or above. That means the rent covers the full mortgage payment. Below 1.0 limits your options.

Question 3

Does a conventional loan work for rental properties?

Accepted Answer

Yes, up to a point. You can use conventional financing on investment properties, but lenders count rental income conservatively and the rate will be higher.

Question 4

Which loan has stricter credit requirements?

Accepted Answer

DSCR loans typically require 660-680 minimum credit. Conventional can go as low as 620, though better scores get better rates.

Question 5

Can I refinance a rental property with a DSCR loan?

Accepted Answer

Yes. DSCR works for both purchases and refinances on non-owner-occupied properties. The same income ratio rules apply.

Conventional vs DSCR Loans in Albany, CA