Question 1

Can I use a DSCR loan for my primary residence in Orinda?

Accepted Answer

No, DSCR loans apply only to investment properties that generate rental income. Primary residences require conventional, FHA, or other owner-occupant loan programs.

Question 2

Which loan type offers better rates in Contra Costa County?

Accepted Answer

Conventional loans typically provide lower rates due to stricter underwriting standards. DSCR loans price higher to compensate for reduced documentation. Rates vary by borrower profile and market conditions.

Question 3

Do DSCR loans require mortgage insurance like conventional loans?

Accepted Answer

No, DSCR loans don't require private mortgage insurance regardless of down payment size. However, larger down payments generally result in better rates on DSCR products.

Question 4

Can I qualify for both loan types simultaneously?

Accepted Answer

Yes, many investors use conventional loans for primary residences while securing DSCR loans for rental properties. Each loan evaluates differently based on property type and use.

Question 5

What credit score do I need for each loan in Orinda?

Accepted Answer

Conventional loans typically require a minimum 620 credit score. DSCR loans usually need 660 or higher, though some lenders accept lower scores with larger down payments.

Conventional vs DSCR Loans in Orinda: Which Financing Fits Your Property Goals?