Question 1

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

Accepted Answer

No. DSCR loans are investment property products only. For a primary residence, you need conventional, FHA, or VA financing.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require a 640-680 minimum. Higher scores still get better pricing, same as conventional.

Question 3

How is DSCR calculated?

Accepted Answer

Divide the property's gross monthly rent by the full monthly mortgage payment. A ratio of 1.0 means rent covers the payment exactly.

Question 4

Which loan has a lower down payment requirement?

Accepted Answer

Conventional loans can go as low as 3% down for primary homes. DSCR loans typically require 20-25% for investment properties.

Question 5

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes, most DSCR programs allow LLC ownership. Conventional loans generally require the borrower to hold title personally.

Question 6

Are DSCR loans harder to get approved in Riverside County?

Accepted Answer

Not harder — just different. Approval depends on the property's rent, not your income. The property has to carry itself. Rates vary by borrower profile and market conditions.

Conventional vs DSCR Loans in Murrieta, CA