Question 1

Can I use a DSCR loan for a primary residence?

Accepted Answer

No. DSCR loans are for investment properties only. You must use conventional or another owner-occupied loan program for homes you plan to live in.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Both typically require 620 minimum. Higher scores get better pricing on both programs, especially conventional loans which tier rates more aggressively.

Question 3

Do DSCR loans require larger down payments?

Accepted Answer

Yes. DSCR loans typically need 20-25% down. Conventional loans for primary homes can go as low as 3-5% down with PMI.

Question 4

How do lenders calculate DSCR if the property is vacant?

Accepted Answer

They use the appraisal's market rent estimate. The appraiser researches comparable rentals in Lafayette to determine what the property should rent for.

Question 5

Can I refinance a conventional loan into a DSCR loan?

Accepted Answer

Yes, if you convert your primary home to a rental. The property must be investment-use and generate rental income to qualify for DSCR financing.

Conventional vs DSCR Loans in Lafayette: Which Fits Your Investment Strategy?