Question 1

Can I use a DSCR loan to buy in San Anselmo?

Accepted Answer

Yes, if the property will be rented. DSCR loans are for investment properties only — not primary residences.

Question 2

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require 620 minimum. You'll get the best rates with a 740 or higher. Rates vary by borrower profile and market conditions.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No. That's the point. Qualification is based on the rental property's income, not your personal tax history.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional loans almost always carry lower rates than DSCR. DSCR lenders charge more for the flexibility of skipping income docs. Rates vary by borrower profile and market conditions.

Question 5

Can an LLC take out a DSCR loan?

Accepted Answer

Yes. Many DSCR lenders allow LLC ownership. Conventional loans typically require the borrower to hold title personally.

Question 6

How much do I need to put down for a DSCR loan?

Accepted Answer

Plan on 20-25% down. Some lenders go to 15%, but that usually means a higher rate and stricter DSCR requirements.

Conventional vs DSCR Loans in San Anselmo