Question 1

Can I use a DSCR loan for a primary residence?

Accepted Answer

No. DSCR loans are investment property only. For a primary home, you need conventional or another QM loan.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 680 or higher. Conventional goes down to 620 with the right lender.

Question 3

Do short-term rentals qualify for DSCR in Nevada City?

Accepted Answer

Some lenders accept short-term rental income projections. Others require a signed long-term lease. It depends on the lender.

Question 4

Which loan closes faster in Nevada City?

Accepted Answer

DSCR loans often close faster. No income verification means fewer documents to collect and review.

Question 5

Are DSCR rates higher than conventional rates?

Accepted Answer

Yes. DSCR is a non-QM product and carries a rate premium. Rates vary by borrower profile and market conditions.

Question 6

What down payment does each loan require?

Accepted Answer

Conventional can go as low as 3-5% for owner-occupants. DSCR loans typically require 20-25% down.

Conventional vs DSCR Loans in Nevada City, CA