Question 1

Can I use a DSCR loan to buy a home I'll live in?

Accepted Answer

No. DSCR is for investment properties only. If you're buying a primary residence, you need a conventional or government-backed loan.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require 620 to 660 minimum. Stronger credit scores get better rates on both loan types.

Question 3

Does DSCR require tax returns?

Accepted Answer

No personal tax returns required. The lender qualifies the property on rental income, not your personal financials.

Question 4

Which loan has the lower interest rate?

Accepted Answer

Conventional loans typically carry lower rates. DSCR rates run higher due to the increased risk profile. Rates vary by borrower profile and market conditions.

Question 5

What down payment does a DSCR loan require?

Accepted Answer

Most DSCR lenders require 20 to 25% down. Conventional investment property loans also require at least 15 to 20% down.

Question 6

Can I get a DSCR loan on a duplex in King City?

Accepted Answer

Yes. Multi-unit properties up to 4 units are eligible for DSCR financing as long as the income covers the debt service.

Conventional vs DSCR Loans in King City, CA