Question 1

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

Accepted Answer

No. DSCR is for investment properties only. Primary home purchases require conventional, FHA, VA, or similar owner-occupied financing.

Question 2

Which loan has a lower interest rate?

Accepted Answer

Conventional rates run lower. DSCR lenders charge more because investor loans carry higher default risk. Rates vary by borrower profile and market conditions.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No tax returns needed. Approval is based on the rental property's income relative to its monthly debt payment.

Question 4

What credit score do I need for each loan?

Accepted Answer

Conventional requires 620 minimum. Most DSCR lenders want 680 or higher due to the investment property risk.

Question 5

Can I use projected rent for DSCR qualification?

Accepted Answer

Some lenders accept a market rent appraisal on vacant properties. Existing lease agreements make approval more straightforward.

Question 6

Which loan works better for Corcoran rental properties?

Accepted Answer

DSCR works well when rent covers the mortgage at a 1.1+ ratio. Conventional is cheaper if your income qualifies on paper.

Conventional vs DSCR Loans in Corcoran, CA