Question 1

Can I use a DSCR loan to buy a primary residence in El Centro?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, you need conventional or a government-backed loan.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 680 or higher. Some go down to 640, but expect a higher rate at lower scores.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No tax returns required. The property's rental income is the qualifying factor, not your personal income.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional rates are generally lower. Rates vary by borrower profile and market conditions.

Question 5

How is DSCR calculated?

Accepted Answer

Divide the property's monthly rent by the total monthly mortgage payment. A result of 1.0 or above typically qualifies.

Question 6

Can I get a conventional loan as an investor in El Centro?

Accepted Answer

Yes, for 1-4 unit investment properties. Expect higher down payment requirements and stricter income verification.

Conventional vs DSCR Loans in El Centro, CA