Question 1

Can I use a DSCR loan for a primary residence?

Accepted Answer

No. DSCR loans are investment property only. For a primary residence in Sand City, you need conventional or a government-backed loan.

Question 2

What credit score does a DSCR loan require?

Accepted Answer

Most DSCR lenders want 680 or higher. Some go down to 660, but rates get noticeably worse below 700.

Question 3

How much down payment does a DSCR loan need?

Accepted Answer

Plan on 20-25% down for DSCR. Some lenders allow 15% with strong rental income and credit.

Question 4

Do conventional investment loans require more income docs?

Accepted Answer

Yes. Lenders will pull two years of tax returns and verify all income sources. Rental income is only partially counted.

Question 5

Which loan closes faster in Monterey County?

Accepted Answer

DSCR loans often close faster. No tax return review means less back-and-forth with underwriting.

Question 6

Can I refinance a DSCR loan into a conventional later?

Accepted Answer

Yes, if you can qualify on personal income at that time. Many investors do this once their tax returns improve.

Conventional vs DSCR Loans in Sand City, CA