Question 1

Can I use a conventional loan to buy a rental property?

Accepted Answer

Yes, for 1-4 unit properties. But you'll still qualify on personal income, and rates are slightly higher for non-owner-occupied purchases.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require a 660-680 minimum. Better scores still get better rates, even without income docs.

Question 3

How is DSCR calculated?

Accepted Answer

Take the monthly rent and divide by the total mortgage payment. A $1,500 rent on a $1,300 payment gives you a 1.15 DSCR — that's approvable.

Question 4

Which loan closes faster in Los Banos?

Accepted Answer

DSCR can move quickly since there's no income verification. Conventional timelines depend on appraisal and underwriting queue.

Question 5

Can I get a DSCR loan as a first-time investor?

Accepted Answer

Yes. Some lenders add a small rate premium, but first-time investors do qualify for DSCR. The property's income is what they're underwriting.

Conventional vs DSCR Loans in Los Banos, CA