Question 1

Can I use DSCR for a primary residence in La Mirada?

Accepted Answer

No. DSCR loans only finance investment properties. You need conventional, FHA, or VA financing for a primary home.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional starts at 620 but most investors need 680+ for rental properties. DSCR requires 680 minimum with no exceptions.

Question 3

How do lenders calculate the DSCR ratio?

Accepted Answer

They divide monthly market rent by the total debt service. A 1.0 ratio means rent exactly covers the payment—most lenders want 1.1 or higher.

Question 4

Which loan closes faster?

Accepted Answer

DSCR typically closes in 2-3 weeks versus 3-4 weeks for conventional. No income verification means fewer conditions and faster underwriting.

Question 5

Can I refinance from conventional to DSCR later?

Accepted Answer

Yes. Many investors refinance into DSCR once they own multiple properties and want to avoid income documentation on future purchases.

Conventional vs DSCR Loans in La Mirada: Which Fits Your Investment Strategy?