Question 1

Can I use a DSCR loan on a property I'll live in part-time?

Accepted Answer

No. DSCR loans require 100% investment use. If you'll occupy any unit, you need conventional or another program entirely.

Question 2

What rent amount do DSCR lenders use for calculations?

Accepted Answer

Most use an appraisal's market rent opinion. If the property is already rented, some lenders accept the lease amount if it's at market.

Question 3

Do both loan types allow cash-out refinancing on Covina rentals?

Accepted Answer

Yes. Conventional cash-out caps at 75% LTV on investment properties. DSCR typically allows 80% LTV if the ratio holds above 1.0.

Question 4

Which loan closes faster in Covina?

Accepted Answer

DSCR loans close in 15-20 days because there's no income verification. Conventional takes 30-40 days with full documentation requirements.

Question 5

Can I refinance from DSCR to conventional later?

Accepted Answer

Absolutely. Many investors start with DSCR for speed, then refinance to conventional once they can document income and want the lower rate.

Conventional vs DSCR Loans in Covina: Which Financing Fits Your Investment Strategy?