Question 1

Can I use a DSCR loan to buy my primary home in Ione?

Accepted Answer

No. DSCR loans are for investment properties only. Use a conventional loan for owner-occupied purchases.

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional lenders typically want 620 minimum. DSCR lenders usually require 660-680, sometimes higher for better pricing.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No personal tax returns required. The property's rent-to-payment ratio drives the approval decision.

Question 4

Which loan has the lower interest rate?

Accepted Answer

Conventional loans carry lower rates for qualified borrowers. DSCR rates run higher due to the non-QM risk profile. Rates vary by borrower profile and market conditions.

Question 5

Can an LLC take out a DSCR loan?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Conventional loans require the borrower to take title personally.

Question 6

What is a good DSCR ratio for Ione rental properties?

Accepted Answer

Most lenders want a DSCR of 1.20 or higher. Below 1.0 means rent does not cover the mortgage payment.

Conventional vs DSCR Loans in Ione, CA