Question 1

Can I use a DSCR loan for a property in Commerce?

Accepted Answer

Yes. DSCR lenders care about the rent the property generates — not where it's located. Commerce rental income qualifies like any other market.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require a 680 minimum. Some go lower, but rates rise sharply below that threshold.

Question 3

Do conventional loans allow investment properties?

Accepted Answer

Yes, up to 10 financed properties under Fannie Mae guidelines. Beyond that, DSCR is usually the cleaner path.

Question 4

What DSCR ratio do lenders require?

Accepted Answer

Most lenders want a DSCR of 1.0 or higher. Below 1.0 means the rent doesn't cover the mortgage — that's a red flag.

Question 5

Which loan closes faster in Commerce?

Accepted Answer

DSCR often closes faster. There's no employer verification or tax return analysis slowing down underwriting.

Question 6

Can I get a conventional loan through an LLC?

Accepted Answer

No. Conventional loans require individual borrowers. DSCR is the go-to when buying under an LLC or business entity.

Conventional vs DSCR Loans in Commerce, CA