Question 1

Can I use a DSCR loan to buy my primary home in Montclair?

Accepted Answer

No. DSCR is investment property only. For a primary residence, conventional is the right path.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 680 or higher. Some go down to 660 with a larger down payment. Rates vary by borrower profile and market conditions.

Question 3

Which loan has the lower interest rate?

Accepted Answer

Conventional rates run lower. DSCR lenders price in more risk since they skip income verification. Rates vary by borrower profile and market conditions.

Question 4

Can I buy a duplex or triplex with a DSCR loan?

Accepted Answer

Yes. DSCR works well on 2–4 unit properties. The combined rent just needs to meet the coverage ratio the lender requires.

Question 5

Do I need to form an LLC to use a DSCR loan?

Accepted Answer

No, but DSCR lenders do allow LLC borrowing — conventional loans typically do not. Many portfolio investors prefer the LLC structure for liability reasons.

Question 6

How does SRK CAPITAL find the best loan for my Montclair investment?

Accepted Answer

SRK CAPITAL shops across 200+ wholesale lenders. We match your property's cash flow and your credit profile to the program that pencils out.

Conventional vs DSCR Loans in Montclair, CA