Question 1

Can I use a DSCR loan on a Seaside home I plan to live in?

Accepted Answer

No. DSCR loans are investment-only. You'll need conventional or another owner-occupant product if you're moving in.

Question 2

Do conventional loans work for rental properties in Seaside?

Accepted Answer

Yes, but you'll need 15% down and show the rental income on your tax returns. DSCR loans skip that step.

Question 3

Which loan type has a lower rate?

Accepted Answer

Conventional loans run 0.5-1.5% lower than DSCR loans because lenders see owner-occupants as less risky.

Question 4

Can I avoid PMI with a DSCR loan?

Accepted Answer

DSCR loans don't charge PMI. You'll pay a higher rate instead, which achieves the same economic result for the lender.

Question 5

What credit score do I need for each loan?

Accepted Answer

Conventional loans start at 620. DSCR loans typically require 660 or higher depending on the lender.

Conventional vs DSCR Loans in Seaside: Owner-Occupant or Investor?