Question 1

Can I use a DSCR loan for a primary residence in Crescent City?

Accepted Answer

No. DSCR loans are investment property only. For a primary home, conventional is the standard path.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 660 or higher. Some go to 640, but expect a higher rate and stricter reserve requirements.

Question 3

How is the DSCR ratio calculated?

Accepted Answer

Divide the property's monthly gross rent by the total monthly mortgage payment. A 1.1 ratio or above usually qualifies.

Question 4

Which loan has lower rates — conventional or DSCR?

Accepted Answer

Conventional rates are typically lower. DSCR is a non-QM product, so lenders price in more risk. Rates vary by borrower profile and market conditions.

Question 5

Can I buy a short-term rental with a DSCR loan near Crescent City?

Accepted Answer

Yes, many DSCR lenders accept short-term rental income. Some use Airbnb or VRBO data to estimate market rent.

Question 6

Do conventional loans have investor property restrictions?

Accepted Answer

Yes. Conventional guidelines limit investment property financing and require larger down payments — usually 15-25%.

Conventional vs DSCR Loans in Crescent City, CA