Question 1

Can I use a DSCR loan for my first investment property?

Accepted Answer

Yes, but you'll pay a higher rate than conventional. Most first-time landlords save money going conventional unless their income documentation is messy.

Question 2

What rent amount do DSCR lenders use for Concord properties?

Accepted Answer

They order an appraisal with a rent schedule showing market rents for comparable properties. Your actual lease doesn't matter if the property isn't rented yet.

Question 3

Do conventional loans allow cash-out refinances on Concord rentals?

Accepted Answer

Yes, but you're limited to 75% LTV on investment properties versus 80% on primary homes. DSCR cash-out refi rules are similar.

Question 4

How does the 10-property conventional limit actually work?

Accepted Answer

Fannie Mae counts any property with a mortgage in your name, even if it's your primary home. Paid-off properties don't count toward the limit.

Question 5

Can I switch from conventional to DSCR loans mid-portfolio?

Accepted Answer

Absolutely. Most investors use conventional for properties 1-6, then switch to DSCR once their DTI gets too tight or they want faster scaling.

Conventional vs DSCR Loans: Which Works for Concord Investment Properties?