Question 1

Can I use both loan types at the same time?

Accepted Answer

Yes. Most investors use conventional for their first 10 properties, then switch to DSCR for additional acquisitions. The programs don't conflict.

Question 2

Do DSCR loans require higher credit scores?

Accepted Answer

Most DSCR lenders want 680+ credit. Conventional loans can go as low as 620 for investment properties with larger down payments.

Question 3

Which loan type closes faster in Beverly Hills?

Accepted Answer

DSCR often closes 5-7 days quicker since there's no employment verification. Conventional takes longer when underwriters request additional income docs.

Question 4

Can I use projected rent for DSCR qualification?

Accepted Answer

Yes. Lenders order an appraisal with a rent schedule to determine market rent. You don't need an existing tenant in place.

Question 5

What happens if my DSCR ratio falls below 1.0?

Accepted Answer

Some lenders approve ratios as low as 0.75 with higher rates and larger down payments. Others won't finance properties with negative cash flow.

Conventional vs DSCR Loans: Which Works for Beverly Hills Investment Properties?