Question 1

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

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 a 680 or higher. Conventional loans can go down to 620 with the right profile.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No tax returns required. The lender evaluates the rental income against the mortgage payment — that's the whole qualification.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional rates are typically lower for qualified borrowers. DSCR loans carry a premium for the flexible income qualification. Rates vary by borrower profile and market conditions.

Question 5

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes. DSCR loans are one of the few programs that allow LLC ownership. Many investors structure it that way for liability protection.

Question 6

How is DSCR calculated for a Corona rental property?

Accepted Answer

Divide the monthly rent by the total monthly mortgage payment. A ratio at or above 1.0 means the property covers its own debt.

Conventional vs DSCR Loans in Corona, CA