Question 1

Can I use a DSCR loan for a Long Beach duplex I'll live in?

Accepted Answer

No. DSCR loans are investment-only—the property must be rented out. For owner-occupied 2-4 units, conventional is your path and offers better terms anyway.

Question 2

What DSCR ratio do Long Beach properties typically hit?

Accepted Answer

Most Long Beach multifamily properties clear 1.0-1.25 DSCR at current rents. Single-family rentals run tighter, often 0.9-1.1 depending on neighborhood and purchase price.

Question 3

Do DSCR loans require reserves like conventional loans?

Accepted Answer

Yes, typically 6-12 months of property payments in liquid reserves. Conventional investment loans also require reserves, usually 2-6 months depending on unit count.

Question 4

Can I refinance a conventional loan into a DSCR loan?

Accepted Answer

Absolutely. Many Long Beach investors refinance to DSCR when buying their next property, freeing up their debt-to-income ratio for conventional financing on a new purchase.

Question 5

Which loan type closes faster in Long Beach?

Accepted Answer

DSCR often closes quicker—less documentation to gather. Conventional loans take 30-45 days; DSCR can close in 21-30 days with a clean file and appraisal.

Conventional vs DSCR Loans: Which Fits Your Long Beach Investment Strategy?