Question 1

Can I use a DSCR loan for a primary residence in Del Rey Oaks?

Accepted Answer

No. DSCR loans are for investment properties only. Primary residences require income-based qualification — conventional or other QM loans.

Question 2

What credit score do DSCR lenders typically require?

Accepted Answer

Most DSCR lenders want at least a 660–680 score. Some go lower, but rates increase sharply below that threshold.

Question 3

Do conventional loans allow rental income to qualify?

Accepted Answer

Yes, but lenders use only 75% of gross rental income. You still need to document personal income alongside it.

Question 4

Can an LLC take out a DSCR loan?

Accepted Answer

Yes. Many DSCR lenders close loans in an LLC. That's a real advantage for investors who hold properties in business entities.

Question 5

Which loan closes faster in Monterey County?

Accepted Answer

DSCR loans often close faster since there's no income verification process. Conventional loans require full underwriting of personal financials.

Conventional vs DSCR Loans in Del Rey Oaks, CA