Question 1

Can I use a DSCR loan to buy a primary residence in American Canyon?

Accepted Answer

No. DSCR loans are for investment properties only. Use a conventional loan for a home you plan to live in.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want a 680 or higher. Conventional loans can go as low as 620 with the right lender.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No. That's the main advantage. Lenders qualify the property's income, not yours.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional rates are almost always lower. DSCR lenders price in extra risk for skipping income verification. Rates vary by borrower profile and market conditions.

Question 5

Can an LLC close a DSCR loan in American Canyon?

Accepted Answer

Yes. DSCR loans allow LLC vesting. Conventional loans require the borrower to hold title personally.

Question 6

How is DSCR calculated?

Accepted Answer

Divide the property's monthly rent by the monthly mortgage payment. A ratio at or above 1.0 means the rent covers the debt.

Conventional vs DSCR Loans in American Canyon