Question 1

Can I use DSCR for a primary residence in Torrance?

Accepted Answer

No. DSCR loans are investment-only. You must rent the property to generate the income that qualifies you for the loan.

Question 2

What DSCR ratio do I need to qualify?

Accepted Answer

Most lenders require 1.0 or higher, meaning rent covers the full mortgage payment. Lower ratios to 0.75 are possible with rate adjustments.

Question 3

Are DSCR rates always higher than conventional?

Accepted Answer

Yes. Expect 1.5-2.5% higher rates because you're not verifying personal income. Rates vary by borrower profile and market conditions.

Question 4

How much down payment does each loan require?

Accepted Answer

Conventional needs 15-25% down on investment properties. DSCR typically requires 20-25% down regardless of how many properties you own.

Question 5

Which loan closes faster in Torrance?

Accepted Answer

DSCR usually closes in 10-15 days since there's no employment verification. Conventional takes 30+ days when income documentation gets complex.

Question 6

Can I refinance a conventional loan into a DSCR loan?

Accepted Answer

Yes. Many investors refinance to DSCR when their income situation changes or they want to pull equity without income verification.

Conventional vs DSCR Loans in Torrance: Which Financing Strategy Wins for Your Investment?