Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

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

Question 2

What credit score does a DSCR loan require?

Accepted Answer

Most DSCR lenders want at least a 660–680 credit score. Some go lower, but rates get worse fast below 700.

Question 3

Do conventional loans allow rental properties?

Accepted Answer

Yes, up to 10 financed properties with conventional. But your personal DTI must still support the payment.

Question 4

Which loan has a lower down payment requirement?

Accepted Answer

Conventional wins here — as low as 3% for primary homes. DSCR loans typically require 20–25% down.

Question 5

Can an LLC hold a conventional loan?

Accepted Answer

No. Conventional loans require individual borrowers. DSCR loans can close in an LLC or other entity.

Question 6

Is DSCR harder to get approved for?

Accepted Answer

It depends. DSCR skips income docs but scrutinizes the property's rent income. A low-rent market can kill the deal.

Conventional vs DSCR Loans in Avenal, CA