Question 1

Can I use a DSCR loan to buy a home I'll live in?

Accepted Answer

No. DSCR loans require the property to be rented. Owner-occupancy violates loan terms and triggers the due-on-sale clause.

Question 2

Which loan type closes faster in Firebaugh?

Accepted Answer

DSCR loans often close in 18-21 days since there's no income verification. Conventional takes 25-35 days with full underwriting.

Question 3

Do conventional loans work for rental properties?

Accepted Answer

Yes, but expect 15-25% down and stricter reserve requirements. DSCR loans offer simpler approval for pure investment deals.

Question 4

What credit score do I need for each loan?

Accepted Answer

Conventional requires 620 minimum. DSCR typically starts at 640, though some lenders accept 620 with larger down payments.

Question 5

Can I avoid PMI with 10% down on either loan?

Accepted Answer

Conventional requires PMI below 20% down. DSCR loans don't have PMI but price the higher risk into the rate instead.

Conventional vs DSCR Loans in Firebaugh: Owner-Occupant or Investor?