Question 1

Can I use a DSCR loan for a primary residence?

Accepted Answer

No. DSCR loans are for investment properties only. You must intend to rent the property out.

Question 2

What DSCR ratio do most lenders require?

Accepted Answer

Most want at least 1.1. That means rent must exceed the monthly loan payment by 10%.

Question 3

Do conventional loans allow rental income to qualify?

Accepted Answer

On investment properties, lenders allow a portion of rental income. But it is counted differently than DSCR.

Question 4

Which loan has a lower interest rate?

Accepted Answer

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

Question 5

Can an LLC take out a DSCR loan?

Accepted Answer

Yes. Most DSCR programs allow LLC or entity borrowing. Conventional loans require you to borrow personally.

Question 6

Which loan is harder to qualify for?

Accepted Answer

Depends on your situation. DSCR skips income docs but demands more down. Conventional needs strong personal income but allows less down.

Conventional vs DSCR Loans in Rio Dell, CA