Question 1

Can I use DSCR for a property I plan to live in?

Accepted Answer

No. DSCR is for investment properties only. Owner-occupied purchases require conventional or government-backed financing.

Question 2

What credit score do I need for a DSCR loan in Hayward?

Accepted Answer

Most DSCR lenders want at least 620-680. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

Does a conventional loan work for Hayward rental properties?

Accepted Answer

Yes, for 1-4 unit properties. You'll need 15-25% down on investment purchases and full income documentation.

Question 4

How is DSCR calculated?

Accepted Answer

Divide the property's monthly rent by its monthly debt payment. A $3,500 rent on a $3,000 PITI payment gives you a 1.17 DSCR.

Question 5

Which loan closes faster in Hayward?

Accepted Answer

DSCR often closes faster because there's no income verification process. Less documentation means fewer delays.

Question 6

Can self-employed borrowers use conventional loans?

Accepted Answer

Yes, but lenders use your net income after deductions — often much lower than gross. DSCR sidesteps that problem entirely for investment buys.

Conventional vs DSCR Loans in Hayward, CA