Question 1

Can I use DSCR loans for a Cerritos house I'll live in?

Accepted Answer

No. DSCR loans are investment-only products requiring rental income to qualify. You must use conventional financing for owner-occupied properties.

Question 2

Which loan closes faster in Cerritos?

Accepted Answer

DSCR loans often close quicker since they skip employment and income verification. Conventional loans need more documentation but still close in 21-30 days with responsive borrowers.

Question 3

Do both loan types work for Cerritos condos?

Accepted Answer

Yes, but DSCR lenders are pickier about condo approval and investor concentration ratios. Conventional loans have clearer condo guidelines through Fannie Mae and Freddie Mac.

Question 4

Can I refinance from conventional to DSCR later?

Accepted Answer

Absolutely. Many Cerritos investors refinance to DSCR loans after converting a primary residence to a rental. You'll pay higher rates but remove personal income requirements.

Question 5

Which loan allows more Cerritos properties at once?

Accepted Answer

DSCR loans have no hard cap on financed properties. Conventional financing maxes out at 10 financed properties total, making DSCR essential for serious portfolio growth.

Conventional vs DSCR Loans in Cerritos: Owner-Occupied or Investment Property?