Question 1

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

Accepted Answer

No. DSCR is investment property only. For a primary residence, you need conventional, FHA, or another owner-occupant product.

Question 2

What credit score do DSCR loans require?

Accepted Answer

Most DSCR lenders want 660 or higher. Some go to 640, but you'll pay for it in rate.

Question 3

Do conventional loans work for rental properties?

Accepted Answer

Yes, but lenders cap most borrowers at 10 financed properties. DSCR has no such hard cap.

Question 4

Which loan closes faster in San Leandro?

Accepted Answer

DSCR often closes faster. No tax return review means less back-and-forth with underwriting.

Question 5

Can I hold a DSCR loan in my LLC?

Accepted Answer

Yes. That's one of DSCR's biggest advantages — conventional loans require you to hold title personally.

Question 6

How is DSCR calculated?

Accepted Answer

Divide the property's monthly gross rent by the full monthly payment (PITIA). A ratio of 1.0 means rent equals payment.

Conventional vs DSCR Loans in San Leandro