Question 1

Can I use a DSCR loan for a primary residence in Moraga?

Accepted Answer

No. DSCR loans only finance investment properties. For a primary residence, you need a conventional, FHA, or VA loan.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional loans require 620 minimum. DSCR loans typically start at 660, though some lenders go to 640 with higher rates.

Question 3

How much can I borrow with a DSCR loan in Moraga?

Accepted Answer

Most DSCR lenders cap at $3-4 million. Loan amount depends on the rental income, not your personal finances.

Question 4

Do DSCR loans require reserves?

Accepted Answer

Yes. Expect to show 6-12 months of mortgage payments in cash reserves. Requirements increase with multiple properties.

Question 5

Can I refinance a conventional loan into a DSCR loan?

Accepted Answer

Absolutely. Many investors refinance after converting a primary home to a rental. DSCR cash-out refis are common for portfolio growth.

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