Question 1

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

Accepted Answer

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

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want a 680 minimum. You can qualify with 640, but expect a higher rate.

Question 3

How is DSCR calculated?

Accepted Answer

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

Question 4

Do conventional loans allow rental properties?

Accepted Answer

Yes, up to a point. Fannie Mae allows conventional financing on investment properties, but income and reserve requirements are stricter.

Question 5

Which loan closes faster in Mendocino County?

Accepted Answer

DSCR loans often close faster. Skipping income verification removes a major documentation bottleneck.

Question 6

Can I hold a DSCR loan in an LLC?

Accepted Answer

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

Conventional vs DSCR Loans in Ukiah, CA