Question 1

Can I use a DSCR loan to buy a home in Perris to live in?

Accepted Answer

No. DSCR loans are investment property only. You need a conventional or government-backed loan for a primary residence.

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 scores as low as 620.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No. The property's rental income does the qualifying. Your personal tax returns are not reviewed.

Question 4

Which loan has lower rates in Perris?

Accepted Answer

Conventional loans carry lower rates. DSCR rates are higher because lenders take on more risk with investment properties. Rates vary by borrower profile and market conditions.

Question 5

Can a self-employed borrower use a conventional loan?

Accepted Answer

Yes, but lenders will require two years of tax returns. If your income looks low on paper, DSCR may be the stronger move for investment buys.

Question 6

How does DSCR ratio affect my approval in Riverside County?

Accepted Answer

A DSCR below 1.0 means rent doesn't cover the payment. Most lenders won't approve that deal without strong compensating factors.

Conventional vs DSCR Loans in Perris, CA