Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. Use a conventional loan for a home you plan to live in.

Question 2

Which loan has lower rates, conventional or DSCR?

Accepted Answer

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

Question 3

Do DSCR loans require income documentation?

Accepted Answer

No personal income docs are required. Lenders verify the property's rental income instead — usually via a lease or rent schedule.

Question 4

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least 620-640. A stronger score gets you better pricing and terms.

Question 5

Can I get a conventional loan as an investor in El Cajon?

Accepted Answer

Yes, conventional loans work for investment properties too. But you must qualify on personal income and expect higher rates than owner-occupant pricing.

Question 6

How is DSCR calculated?

Accepted Answer

Divide monthly rent by the total monthly loan payment. A result of 1.0 means break-even. Most lenders want 1.1 or above.

Conventional vs DSCR Loans in El Cajon