Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

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

Question 2

What credit score does a DSCR loan require?

Accepted Answer

Most DSCR lenders want at least 620–640. Better scores get better rates, and the rate spread is wider on non-QM products.

Question 3

Does conventional work if I'm self-employed?

Accepted Answer

Yes, but lenders use your net income after write-offs. Heavy write-offs shrink your qualifying income, which is why many self-employed investors prefer DSCR.

Question 4

What DSCR ratio do lenders actually want?

Accepted Answer

Most want 1.0 or above. Some lenders go down to 0.75 with higher rates. Below 1.0 means rent doesn't fully cover the payment.

Question 5

Which loan closes faster in Laguna Hills?

Accepted Answer

DSCR can close fast since there's no income verification process. Conventional timelines depend on how clean your financial docs are.

Question 6

Can I have both a conventional and a DSCR loan at the same time?

Accepted Answer

Yes. Many investors carry a conventional loan on their primary home and use DSCR for rental acquisitions. The two programs don't conflict.

Conventional vs DSCR Loans in Laguna Hills, CA