Question 1

Can I use a DSCR loan to buy a primary residence in La Puente?

Accepted Answer

No. DSCR loans only finance investment properties. For owner-occupied homes, you need conventional, FHA, or VA financing.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional loans typically require 620 minimum, though some lenders go lower. DSCR loans usually need 660-680 for best pricing.

Question 3

How much rental income do I need to qualify for a DSCR loan?

Accepted Answer

Most lenders want a 1.0 DSCR ratio, meaning monthly rent covers the mortgage payment. Some accept 0.75 ratios with larger down payments.

Question 4

Which loan closes faster in La Puente?

Accepted Answer

DSCR loans often close quicker because lenders skip income verification. Conventional loans take longer due to employment and tax return reviews.

Question 5

Can I refinance from conventional to DSCR later?

Accepted Answer

Yes. Many investors refinance to DSCR once they build rental portfolios and want to avoid income documentation on future purchases.

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