Question 1

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

Accepted Answer

No. DSCR loans are investment property only. For a primary residence, you need conventional or a government-backed loan.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require at least a 660-680 credit score. Some go down to 640, but expect a higher rate.

Question 3

Do conventional loans allow rental properties?

Accepted Answer

Yes, up to 10 financed properties under Fannie Mae guidelines. But your personal income must support the debt load.

Question 4

Which loan closes faster in Santee?

Accepted Answer

DSCR loans often close faster because there's no income verification. No tax returns means less back-and-forth with underwriting.

Question 5

What if my Santee rental property breaks even — will DSCR work?

Accepted Answer

A DSCR of exactly 1.0 is the floor, but most lenders want 1.1 or higher. Below 1.0 means the rent doesn't cover the payment — that's a hard no.

Question 6

Are DSCR loans considered non-QM?

Accepted Answer

Yes. DSCR loans fall outside standard qualified mortgage rules. More lenders offer them now, but they still carry stricter terms than conventional.

Conventional vs DSCR Loans in Santee, CA