Question 1

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

Accepted Answer

No. DSCR loans are investment-only. For a primary residence, you need conventional, FHA, or another owner-occupant program.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 680 or higher. Some go down to 640, but pricing takes a hit below 700. Rates vary by borrower profile and market conditions.

Question 3

Does a DSCR loan show up on my personal credit?

Accepted Answer

Yes. Even though income isn't verified, the loan is still in your name and reports to your credit bureaus.

Question 4

How do lenders calculate DSCR for a Gonzales rental?

Accepted Answer

They divide the property's monthly gross rent by the full mortgage payment (principal, interest, taxes, insurance). A ratio at or above 1.1 is the standard target.

Question 5

Is a conventional loan harder to get than a DSCR loan?

Accepted Answer

They're hard in different ways. Conventional demands full income docs and low DTI. DSCR demands strong property cash flow and a larger down payment.

Question 6

Can I own multiple properties and still use conventional financing?

Accepted Answer

Fannie Mae allows up to 10 financed properties, but underwriting gets tighter after four. DSCR lenders often have no property count limit.

Conventional vs DSCR Loans in Gonzales, CA