Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

No. DSCR loans are for investment and rental properties only. Use a conventional loan for any home you plan to live in.

Question 2

What credit score do DSCR loans require?

Accepted Answer

Most DSCR lenders want at least a 680. Some go lower, but rates get worse fast below that threshold.

Question 3

Do conventional loans allow rental properties?

Accepted Answer

Yes, up to 10 financed properties under Fannie guidelines. But rates and reserves requirements increase with each one.

Question 4

How is DSCR calculated?

Accepted Answer

Divide the monthly rent by the total mortgage payment. A ratio above 1.0 means the property covers its own debt.

Question 5

Which loan is easier to qualify for in Madera?

Accepted Answer

Depends on your situation. W-2 earners qualify faster with conventional. Investors with complex income often find DSCR simpler.

Question 6

Can I use an LLC with a conventional loan?

Accepted Answer

No. Conventional loans require individual borrowers. DSCR loans commonly close in an LLC, which many investors prefer.

Conventional vs DSCR Loans in Madera, CA