Question 1

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

Accepted Answer

No. DSCR loans are investment property only. Primary homes require 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 660–680. Some go lower but charge higher rates. Conventional can start at 620.

Question 3

Do DSCR loans require a larger down payment?

Accepted Answer

Yes. Expect 20–25% down for DSCR. Conventional investment property loans also require at least 15–20%.

Question 4

Can I get a conventional loan for a rental in Yucaipa?

Accepted Answer

Yes, up to 10 financed properties with Fannie Mae. But lenders count your existing debt load against you.

Question 5

Which loan closes faster?

Accepted Answer

DSCR often closes faster. No income doc collection means less back-and-forth with underwriting.

Question 6

What DSCR ratio do lenders require?

Accepted Answer

Most lenders require a DSCR of 1.0 to 1.25. Below 1.0 means the rent doesn't cover the mortgage payment.

Conventional vs DSCR Loans in Yucaipa, CA