Question 1

Can I use a DSCR loan as my primary residence?

Accepted Answer

No. DSCR loans are investment property only. For a primary residence in Lake Forest, conventional is your route.

Question 2

What credit score does a DSCR loan require?

Accepted Answer

Most DSCR lenders want 660-680 minimum. Some go lower, but rates climb fast below that threshold.

Question 3

How is DSCR calculated?

Accepted Answer

Divide monthly rent by monthly mortgage payment. A 1.0 DSCR means rent equals the payment. Above 1.25 gets better pricing.

Question 4

Can I put an investment property under an LLC with conventional?

Accepted Answer

Typically no. Conventional loans require individual borrowers. DSCR loans regularly close in LLC names.

Question 5

Which loan is faster to close in Lake Forest?

Accepted Answer

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

Question 6

Do both loans have fixed rate options?

Accepted Answer

Yes. Both conventional and DSCR offer 30-year fixed options. DSCR also commonly uses interest-only structures.

Conventional vs DSCR Loans in Lake Forest, CA