Question 1

Can I use a DSCR loan to buy my primary home?

Accepted Answer

No. DSCR loans are for investment properties only. You'll need a conventional or government-backed loan for a primary residence.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require a 620 to 660 minimum. Higher scores get better rates and lower down payment requirements.

Question 3

Do conventional loans work for rental properties?

Accepted Answer

Yes, up to a point. Conventional allows investment property financing, but your personal debt-to-income ratio still has to qualify.

Question 4

What down payment does a DSCR loan require?

Accepted Answer

Expect 20% to 25% down on a DSCR loan. Some lenders go higher if the property's DSCR falls below 1.0.

Question 5

Which loan has lower rates in Calipatria?

Accepted Answer

Conventional loans carry lower rates for qualified borrowers. DSCR loans price higher due to the reduced documentation and investor-loan risk.

Question 6

Can an LLC get a conventional loan?

Accepted Answer

No. Conventional loans require the borrower to be an individual. LLCs must use DSCR or commercial financing.

Conventional vs DSCR Loans in Calipatria, CA