Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. Use a conventional loan for any home you plan to occupy.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least a 620-640 score. Stronger credit gets you better rates and terms.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No tax returns required. Approval is based on the property's rental income, not your personal financials.

Question 4

Which loan has lower rates in Livermore?

Accepted Answer

Conventional rates are typically lower. DSCR pricing reflects the added flexibility for investors. Rates vary by borrower profile and market conditions.

Question 5

Can a self-employed investor use a conventional loan?

Accepted Answer

Yes, but you'll need two years of tax returns showing enough income. DSCR is usually easier for self-employed rental investors.

Question 6

Is there a down payment difference between the two?

Accepted Answer

Conventional allows as little as 3% down for owner-occupants. DSCR loans typically require 20-25% down on investment properties.

Conventional vs DSCR Loans in Livermore, CA