Question 1

Can I use a DSCR loan for my primary residence in Baldwin Park?

Accepted Answer

No. DSCR loans only finance investment properties that generate rental income. For primary residences, conventional loans deliver better rates and terms.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional loans require 620 minimum. DSCR lenders typically want 660-680 for best pricing, though some go as low as 640 with higher rates.

Question 3

How does the DSCR ratio work?

Accepted Answer

Divide monthly market rent by the full mortgage payment including taxes and insurance. A 1.0 ratio means rent exactly covers the payment; lenders prefer 1.1 or higher.

Question 4

Can I refinance from conventional to DSCR?

Accepted Answer

Yes, if the property is now a rental. Many investors refinance to DSCR when they hit the four-property conventional limit and want to buy more.

Question 5

Which loan closes faster?

Accepted Answer

DSCR loans often close quicker since there's no employment verification or income documentation. Expect 15-20 days versus 25-35 for conventional with full underwriting.

Conventional vs DSCR Loans in Baldwin Park: Which Loan Fits Your Investment Strategy?