Question 1

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

Accepted Answer

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

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 660 or higher. Some go down to 640, but rates get worse fast below 700.

Question 3

How is DSCR calculated?

Accepted Answer

Divide the property's gross monthly rent by the full monthly mortgage payment. A result above 1.0 means the rent covers the debt.

Question 4

Can I buy under an LLC with a conventional loan?

Accepted Answer

No. Conventional loans require the borrower to be an individual. DSCR loans allow LLC ownership, which many investors prefer for liability protection.

Question 5

Which loan is faster to close in Oakland?

Accepted Answer

DSCR loans often close faster since there's no income verification. No waiting on tax transcripts or employer verification.

Question 6

Do I need Oakland rental income history to qualify for DSCR?

Accepted Answer

No prior rental history required. Lenders use a current rent appraisal or signed lease to underwrite the deal.

Conventional vs DSCR Loans in Oakland, CA