Question 1

Can I use a DSCR loan for a primary residence?

Accepted Answer

No. DSCR loans are investment property products only. For a primary residence, you need conventional or government-backed financing.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

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

Question 3

Do conventional loans work for multi-unit properties?

Accepted Answer

Yes, up to four units. Beyond that, you're in commercial loan territory and conventional guidelines no longer apply.

Question 4

How is DSCR calculated?

Accepted Answer

Monthly gross rent divided by the total mortgage payment. A ratio of 1.0 means rent exactly covers the payment — lenders usually want at or above that.

Question 5

Which loan has a lower down payment requirement?

Accepted Answer

Conventional can go as low as 3% for qualified buyers. DSCR loans typically require 20-25% down on investment properties.

Question 6

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Conventional loans almost never permit this — they require individual borrower ownership.

Conventional vs DSCR Loans in San Rafael