Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. Primary residences require conventional or government-backed financing.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 680 or higher. Conventional loans can go as low as 620 with the right profile.

Question 3

Which loan has the lower interest rate?

Accepted Answer

Conventional rates run lower for qualified borrowers. DSCR carries a premium for the reduced documentation. Rates vary by borrower profile and market conditions.

Question 4

Do DSCR lenders check my income at all?

Accepted Answer

No income verification is required. The rental income on the subject property is what gets reviewed.

Question 5

Can an LLC get a conventional loan in Willits?

Accepted Answer

No. Conventional loans require individual borrowers. LLCs need DSCR or commercial financing instead.

Question 6

How much do I need down for each loan type?

Accepted Answer

Conventional can go as low as 3% for primary homes. DSCR typically requires 20-25% down minimum.

Conventional vs DSCR Loans in Willits, CA