Question 1

Can I use a DSCR loan to buy a primary home in San Diego?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary residence, you need conventional or government-backed financing.

Question 2

What DSCR ratio do lenders want to see?

Accepted Answer

Most lenders want a DSCR of 1.0 or higher. That means the rent at least equals the full mortgage payment.

Question 3

Do conventional loans work for investment properties?

Accepted Answer

Yes, but with stricter terms. Expect 15-25% down and a higher rate than a primary home loan.

Question 4

Can a self-employed investor use a conventional loan?

Accepted Answer

Yes, but lenders will average two years of tax returns. If deductions reduce your income on paper, qualifying gets harder.

Question 5

Which loan is faster to close in San Diego?

Accepted Answer

DSCR can close faster since there's no income verification. Fewer docs means fewer delays in underwriting.

Question 6

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Conventional loans through Fannie and Freddie do not.

Conventional vs DSCR Loans in San Diego