Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. You need a conventional or government-backed loan for a home you'll live in.

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional loans start at 620. DSCR lenders typically want 640 to 680 minimum, with better terms above 700.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No. That's the point. Lenders look at rental income versus the mortgage payment — your personal returns stay out of it.

Question 4

Which loan has the lower interest rate?

Accepted Answer

Conventional rates run lower for qualified borrowers. DSCR loans carry a rate premium for investment risk. Rates vary by borrower profile and market conditions.

Question 5

Can I use projected rent to qualify for a DSCR loan?

Accepted Answer

Some lenders accept an appraiser's rent schedule on new acquisitions. Most prefer a signed lease or documented rent history.

Question 6

What down payment is required for each in Alameda County?

Accepted Answer

Conventional starts at 3% for primary homes. DSCR loans require 20 to 25% down — no exceptions for investment properties.

Conventional vs DSCR Loans in Union City, CA