Question 1

Can I use a DSCR loan for a primary residence in Rolling Hills?

Accepted Answer

No. DSCR loans only work for investment properties that generate rental income. Primary residences require conventional or government-backed financing.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional loans start at 620 credit. DSCR loans require 680 minimum, with best pricing at 720+.

Question 3

How do lenders calculate the DSCR ratio?

Accepted Answer

They divide monthly market rent by your total housing payment including principal, interest, taxes, insurance, and HOA. Above 1.0 means the property covers itself.

Question 4

Which loan has lower rates?

Accepted Answer

Conventional loans price 0.5-1% below DSCR. Rates vary by borrower profile and market conditions.

Question 5

Can I switch from conventional to DSCR later?

Accepted Answer

Yes. You can refinance a conventionally financed rental into a DSCR loan anytime. Many investors do this to free up qualifying income for the next purchase.

Conventional vs DSCR Loans in Rolling Hills: Which Fits Your Investment Strategy?