Question 1

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

Accepted Answer

No. DSCR loans are for investment properties 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 a 680 minimum. Some go down to 660, but expect a higher rate if your score is below 700.

Question 3

How is DSCR calculated?

Accepted Answer

Divide monthly rental income by the monthly mortgage payment. A $2,200 rent on a $2,000 payment equals a 1.1 DSCR.

Question 4

Do conventional loans allow rental property purchases?

Accepted Answer

Yes, up to 10 financed properties under Fannie Mae guidelines. But your personal income must support all the debt.

Question 5

Which loan closes faster in Highland?

Accepted Answer

DSCR loans often close in 21-30 days since there's no income verification delay. Conventional can match that with a clean file.

Question 6

Are DSCR loans considered non-QM?

Accepted Answer

Yes. DSCR loans fall outside qualified mortgage guidelines. They carry slightly more lender risk, which is reflected in the rate.

Conventional vs DSCR Loans in Highland, CA