Question 1

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

Accepted Answer

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

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least a 680. Some go to 660, but pricing gets worse below 700.

Question 3

Does my rental income need to be verified for DSCR?

Accepted Answer

Lenders use a rent schedule or lease agreement. No tax returns needed — the property's income does the qualifying.

Question 4

Which loan has better rates in Escondido right now?

Accepted Answer

Conventional typically prices lower for primary homes. DSCR carries a risk premium. Rates vary by borrower profile and market conditions.

Question 5

Can I buy through an LLC with a DSCR loan?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Conventional loans do not allow this on residential properties.

Question 6

What if my DSCR ratio is below 1.0?

Accepted Answer

Some lenders go down to 0.75 DSCR with a larger down payment. Expect higher rates and stricter terms below 1.0.

Conventional vs DSCR Loans in Escondido, CA