Question 1

Can I use a DSCR loan to buy my primary home in Atwater?

Accepted Answer

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

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least 660–680. Stronger credit gets you better pricing on this non-QM product.

Question 3

How is DSCR calculated?

Accepted Answer

Divide the monthly rent by the total mortgage payment. A ratio of 1.25 means rent covers 125% of the payment.

Question 4

Do conventional loans work for rental properties?

Accepted Answer

Yes, up to four units with conventional financing. Beyond that, DSCR or commercial products are typical.

Question 5

Which loan has a lower interest rate?

Accepted Answer

Conventional rates are lower. DSCR lenders price in more risk since they skip income verification. Rates vary by borrower profile and market conditions.

Question 6

Can I close a DSCR loan in an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Conventional loans almost always require individual ownership.

Conventional vs DSCR Loans in Atwater, CA