Question 1

Can I use a DSCR loan as a primary residence?

Accepted Answer

No. DSCR loans are investment property only. For a home you'll live in, you need a conventional or government-backed loan.

Question 2

Do DSCR loans require tax returns?

Accepted Answer

No tax returns required. Lenders qualify the deal based on rental income, not your personal income history.

Question 3

What credit score do DSCR lenders want?

Accepted Answer

Most DSCR lenders want 680 or higher. Some go lower, but expect a higher rate and larger down payment requirement.

Question 4

Which loan has the lower interest rate?

Accepted Answer

Conventional loans typically carry lower rates. DSCR is a non-QM product, so lenders price in added risk. Rates vary by borrower profile and market conditions.

Question 5

How much do I need down for a DSCR loan?

Accepted Answer

Most DSCR lenders require 20%-25% down. Conventional loans can go as low as 3% for qualified owner-occupants.

Question 6

Can a self-employed borrower use a conventional loan?

Accepted Answer

Yes, but lenders will use your tax return income — including write-offs. If your taxable income looks low, DSCR may be a cleaner path.

Conventional vs DSCR Loans in Greenfield, CA