Question 1

Can I use a DSCR loan on a primary residence in Colton?

Accepted Answer

No. DSCR loans are investment property products only. For a primary residence, you need conventional or government-backed financing.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least a 680. Some go lower but price the rate higher to offset the added risk.

Question 3

How is the DSCR ratio calculated?

Accepted Answer

Divide the monthly rent by the full mortgage payment — principal, interest, taxes, and insurance. A result above 1.0 means the property covers its costs.

Question 4

Which loan closes faster in San Bernardino County?

Accepted Answer

DSCR can close faster since there's no income verification process. Conventional timelines depend heavily on how quickly you provide documentation.

Question 5

Do conventional loans allow investment properties?

Accepted Answer

Yes, but rules are stricter. Expect a higher down payment and tighter reserve requirements compared to an owner-occupied conventional loan.

Question 6

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes. Most DSCR lenders allow entity vesting. That's one reason real estate investors prefer it over conventional for rentals.

Conventional vs DSCR Loans in Colton, CA