Question 1

Can I use a DSCR loan to buy a primary residence in Sierra Madre?

Accepted Answer

No. DSCR loans only finance investment properties. Primary homes require conventional, FHA, or other owner-occupant programs.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional loans require 620 minimum. DSCR loans typically need 640-680, depending on the lender and down payment size.

Question 3

How does DSCR calculation work for rental properties?

Accepted Answer

Lenders divide monthly rental income by the mortgage payment. A ratio of 1.0 or higher usually qualifies, though some require 1.25.

Question 4

Which loan closes faster in Sierra Madre?

Accepted Answer

DSCR often closes quicker because there's no income documentation to gather. Conventional timelines depend on how fast you provide pay stubs and tax returns.

Question 5

Can I refinance from conventional to DSCR later?

Accepted Answer

Yes. Investors often refi into DSCR once they own multiple properties and their debt ratio makes conventional approval harder.

Conventional vs DSCR Loans in Sierra Madre: Which Fits Your Investment Strategy?