Question 1

Can I use a DSCR loan to buy in Piedmont?

Accepted Answer

Yes, if the property is non-owner-occupied. DSCR loans are investment-only — you cannot use one for a primary residence.

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional typically requires a 620 minimum. Most DSCR lenders want 680 or higher for investment properties.

Question 3

Does DSCR require a larger down payment?

Accepted Answer

Yes. DSCR loans generally require 20–25% down. Conventional can go as low as 3% for qualified buyers.

Question 4

Which loan has the lower interest rate?

Accepted Answer

Conventional rates are lower. DSCR loans carry a premium because they are non-QM products with no personal income verification. Rates vary by borrower profile and market conditions.

Question 5

Can a self-employed borrower use a conventional loan?

Accepted Answer

Yes, but lenders will need two years of tax returns. If your write-offs reduce net income heavily, DSCR may be easier to qualify for.

Conventional vs DSCR Loans in Piedmont, CA