Question 1

Can I use a DSCR loan to buy my primary home?

Accepted Answer

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

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 680 or higher. Some go down to 660, but expect a higher rate at that tier.

Question 3

Do conventional loans allow rental income to qualify?

Accepted Answer

Yes, but lenders typically require a two-year history of that rental income on your tax returns. New rental income rarely counts.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional almost always wins on rate. DSCR is a non-QM product — lenders price in more risk. Rates vary by borrower profile and market conditions.

Question 5

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Conventional lenders almost never do — that is a key structural difference for investors.

Question 6

How does RSM's rental market affect DSCR approval?

Accepted Answer

Strong local rents help. Lenders use market rent to calculate DSCR, so higher rents push your ratio above the 1.1 threshold faster.

Conventional vs DSCR Loans in Rancho Santa Margarita