Question 1

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

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 each loan?

Accepted Answer

Conventional typically requires 620 minimum. DSCR lenders usually want 680 or higher.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No tax returns needed. Lenders qualify the property on its rental income, not your personal financials.

Question 4

Which loan has the lower interest rate?

Accepted Answer

Conventional rates run lower. DSCR is a non-QM product, so lenders price in more risk. Rates vary by borrower profile and market conditions.

Question 5

Can I have both loan types at the same time?

Accepted Answer

Yes. Many Rancho Cucamonga investors carry a conventional loan on their home and DSCR loans on their rentals.

Question 6

How does a lender calculate DSCR?

Accepted Answer

They divide the property's monthly rent by the total mortgage payment. A ratio at or above 1.0 generally means the property qualifies.

Conventional vs DSCR Loans in Rancho Cucamonga