Question 1

Can I use a DSCR loan to buy a primary home?

Accepted Answer

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

Question 2

What credit score does a DSCR loan require?

Accepted Answer

Most DSCR lenders want 680 or higher. Some will go to 660, but rates get worse fast below that threshold.

Question 3

Do conventional loans work for self-employed borrowers?

Accepted Answer

They can, but it's harder. Two years of tax returns are required, and write-offs reduce your qualifying income significantly.

Question 4

How much down payment does a DSCR loan need?

Accepted Answer

Typically 20-25% down. Some lenders require more depending on the property type and your credit profile.

Question 5

Is DSCR considered a non-QM loan?

Accepted Answer

Yes. DSCR is non-QM, meaning it doesn't meet standard agency guidelines. Fewer lenders offer it, so working with a broker matters.

Question 6

Which loan has lower rates in Livingston?

Accepted Answer

Conventional rates run lower. DSCR carries a premium for the flexible qualifying. Rates vary by borrower profile and market conditions.

Conventional vs DSCR Loans in Livingston, CA