Question 1

Can I use a DSCR loan to buy my primary home in Soledad?

Accepted Answer

No. DSCR loans are for investment properties only. Use a conventional loan for your primary residence.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least a 680. Some go down to 640 with a stronger DSCR ratio.

Question 3

Do conventional loans allow rental properties?

Accepted Answer

Yes, up to 10 financed properties under Fannie Mae guidelines. But your personal income must qualify for each one.

Question 4

How is the DSCR ratio calculated?

Accepted Answer

Divide the property's monthly rent by its total monthly debt payment. A ratio above 1.0 means it pays for itself.

Question 5

Which loan closes faster in Soledad?

Accepted Answer

DSCR can close faster because there's no income verification. Conventional timelines depend on your documentation.

Question 6

Are DSCR loan rates higher than conventional rates?

Accepted Answer

Yes, typically by 1-2%. DSCR is a non-QM product, so lenders price in more risk. Rates vary by borrower profile and market conditions.

Conventional vs DSCR Loans in Soledad, CA