Question 1

Can I use a DSCR loan for a primary residence in San Joaquin?

Accepted Answer

No. DSCR loans are investment property financing only. They require rental income to qualify, which doesn't work for owner-occupied homes.

Question 2

Which loan has stricter credit requirements?

Accepted Answer

DSCR loans typically need 660+ credit. Conventional can go as low as 620, though better scores unlock better pricing on both.

Question 3

How does rental income get verified for DSCR loans?

Accepted Answer

Lenders use either an existing lease or a market rent appraisal. The appraiser determines fair market rent based on comparable properties in San Joaquin.

Question 4

Can I convert a conventional loan to DSCR later?

Accepted Answer

You'd refinance from one to the other. If you moved out and rented your conventional-financed home, a DSCR refi could make sense.

Question 5

Do both loans work for multi-unit properties?

Accepted Answer

Conventional allows up to 4 units. DSCR works for 1-4 units and even larger portfolios through some lenders.

Conventional vs DSCR Loans in San Joaquin: Primary Residence or Rental Property Investment?