Question 1

Can I use a DSCR loan on my primary residence in Clovis?

Accepted Answer

No. DSCR loans are for investment properties only. If you're living there, you need conventional, FHA, or another owner-occupied product.

Question 2

Do DSCR loans require reserves?

Accepted Answer

Yes, typically 6-12 months of PITIA in the bank after closing. Conventional rentals need similar reserves but the amount varies by property count.

Question 3

What credit score do I need for each loan type?

Accepted Answer

Conventional starts at 620 for rentals. DSCR lenders want 640 minimum, 680+ for best pricing. Higher scores lower your rate on both products.

Question 4

Can I buy multiple Clovis rentals per year with conventional loans?

Accepted Answer

You're capped at 10 financed properties total. DSCR has no limit, which is why portfolio investors switch once they hit the conventional ceiling.

Question 5

How do lenders calculate DSCR on a Clovis rental?

Accepted Answer

They order an appraisal with rent schedule. Monthly rent divided by PITIA equals your ratio. 1.0 is breakeven; 1.25 is ideal for strong pricing.

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