Question 1

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

Accepted Answer

No. DSCR is strictly for investment properties with arm's-length leases. If you occupy the property at all, you need a conventional owner-occupant loan.

Question 2

Which loan type closes faster in Lomita?

Accepted Answer

DSCR often closes quicker since there's no employment verification or income documentation. Conventional takes longer if you're self-employed or have complex income sources.

Question 3

Do both loan types require appraisals?

Accepted Answer

Yes. Both programs require full appraisals. DSCR lenders also need a rent schedule or lease to verify the property's income potential.

Question 4

Can I switch from conventional to DSCR after buying?

Accepted Answer

Yes, via cash-out refinance. Many investors start conventional for the lower rate, then refi to DSCR later to free up DTI for additional purchases.

Question 5

What if the property doesn't generate enough rent for DSCR approval?

Accepted Answer

You'll need a larger down payment to lower the loan amount and monthly payment. Some lenders accept 0.75 DSCR with 30% down.

Conventional vs DSCR Loans in Lomita: Which Fits Your Property Strategy?