Question 1

Can I use a DSCR loan to buy a primary residence?

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 at least a 620–640 credit score. Higher scores get better rates, just like conventional.

Question 3

Do DSCR loans require a larger down payment?

Accepted Answer

Yes. Most DSCR lenders require 20–25% down. Conventional investment property loans also require 15–25% down.

Question 4

Can a self-employed borrower use a conventional loan?

Accepted Answer

Yes, but lenders use your net income from tax returns — not gross revenue. Two years of returns are required.

Question 5

Which loan closes faster in most cases?

Accepted Answer

DSCR loans can move quickly since there's no income verification. Conventional loans depend on how fast docs come in.

Question 6

Can I use an LLC to take out a DSCR loan?

Accepted Answer

Many DSCR lenders allow LLC vesting. Conventional loans typically require the borrower to hold title personally.

Conventional vs DSCR Loans in Grand Terrace, CA