Question 1

Can I get a conventional loan if I'm self-employed?

Accepted Answer

Yes, but with conditions. You'll need two years of tax returns, profit-and-loss statements, and a CPA letter. Many self-employed borrowers find DSCR simpler because it skips employment verification entirely and focuses on property income instead.

Question 2

What's the real difference in monthly payment between conventional and DSCR?

Accepted Answer

DSCR's higher rate (typically 0.5–1.5% above conventional) adds $50–$150 per month on a $500,000 loan. The larger down payment (20% vs 3%) also means a smaller loan, which lowers the payment. The net effect depends on your specific scenario.

Question 3

Do I need perfect credit for either loan?

Accepted Answer

No. Conventional starts at 620 FICO; DSCR at 660. Both allow credit scores in the mid-600s. Higher scores get better rates. A 680 FICO gets a better rate than a 620 FICO on conventional, even though both qualify.

Question 4

Can I use DSCR to buy my primary home in Newark?

Accepted Answer

Technically yes, but it's not designed for owner-occupants. DSCR underwriting assumes rental income, not your personal use. Conventional is built for primary residences and will cost less. Use DSCR only if conventional doesn't work.

Question 5

How long does each loan take to close?

Accepted Answer

Conventional typically closes in 30–45 days. DSCR takes 45–60 days because the lender must verify property income, appraisals, and lease agreements. If speed matters, conventional wins.

Conventional vs DSCR Loans in Newark: Which Fits Your Purchase?