Question 1

Can I use a DSCR loan for my primary residence in San Jacinto?

Accepted Answer

No, DSCR loans are designed exclusively for investment properties. For primary residences, conventional loans are the appropriate choice.

Question 2

Which loan type has lower interest rates?

Accepted Answer

Conventional loans typically offer lower rates for qualified borrowers. DSCR loans may have higher rates due to their investor focus. Rates vary by borrower profile and market conditions.

Question 3

Do DSCR loans require a larger down payment?

Accepted Answer

Yes, DSCR loans usually require 20-25% down. Conventional loans can start at 3% for qualified buyers, making them more accessible for first-time homebuyers.

Question 4

How does my credit score affect these loan options?

Accepted Answer

Both loan types consider credit scores. Conventional loans reward excellent credit with better rates. DSCR loans may accept lower scores but focus more on property performance.

Question 5

Can I qualify for both loan types in Riverside County?

Accepted Answer

Yes, many borrowers qualify for both. Your choice depends on property purpose and financial strategy, not just qualification ability.

Conventional Loans vs DSCR Loans in San Jacinto: Which Mortgage Is Right for You?