Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, you need conventional or another owner-occupant loan.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least a 680. Conventional loans allow as low as 620 for qualified borrowers.

Question 3

Do DSCR loans require a larger down payment?

Accepted Answer

Yes. Expect 20-25% down on most DSCR loans. Conventional owner-occupant loans can go as low as 3-5% down.

Question 4

Are DSCR rates higher than conventional rates?

Accepted Answer

Yes. DSCR rates typically run 1-2 points above conventional. Rates vary by borrower profile and market conditions.

Question 5

Which loan works better for Newport Beach vacation rentals?

Accepted Answer

DSCR lenders often count short-term rental income if you have documented lease history. Ask us which lenders allow that in Orange County.

Question 6

Can self-employed borrowers use conventional loans?

Accepted Answer

Yes, but lenders average two years of tax returns. Heavy write-offs reduce qualifying income — sometimes DSCR is the cleaner path.

Conventional vs DSCR Loans in Newport Beach