Question 1

Can I use a DSCR loan to buy in Willows?

Accepted Answer

Yes. DSCR loans work for investment properties across California, including Glenn County. The property must generate rental income.

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional loans typically require 620+. DSCR lenders usually want 660-680 minimum, sometimes higher.

Question 3

Do DSCR loans require a larger down payment?

Accepted Answer

Yes. Most DSCR programs require 20-25% down. Conventional loans can go as low as 3% for qualified buyers.

Question 4

Can I use a DSCR loan under an LLC?

Accepted Answer

Yes. That's one reason investors prefer DSCR. Conventional loans generally require borrowing in your personal name.

Question 5

Which loan has lower rates in Willows?

Accepted Answer

Conventional rates are almost always lower. DSCR loans price in a premium for skipping income verification. Rates vary by borrower profile and market conditions.

Question 6

What if my rental income barely covers the mortgage?

Accepted Answer

You may still qualify. Some DSCR programs allow ratios below 1.0. Expect a higher rate or larger down payment requirement.

Conventional vs DSCR Loans in Willows, CA