Question 1

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

Accepted Answer

No. DSCR loans are investment property only. Owner-occupied purchases 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 680. Some go down to 660 with a larger down payment. Rates vary by borrower profile and market conditions.

Question 3

Is a conventional loan harder to get than a DSCR loan?

Accepted Answer

For investors with heavy write-offs, yes. Conventional lenders use taxable income. DSCR lenders use the property's rent instead.

Question 4

Can I own multiple DSCR loans at once?

Accepted Answer

Yes. Unlike conventional loans, DSCR programs don't cap you at 10 financed properties. That's a major advantage for active investors.

Question 5

Which loan closes faster in Vista?

Accepted Answer

DSCR loans often close faster because there's no income documentation to verify. Fewer conditions means fewer delays.

Question 6

Do DSCR loans have higher rates than conventional?

Accepted Answer

Yes, typically 0.5 to 1.5% higher. The trade-off is easier qualification on investment deals. Rates vary by borrower profile and market conditions.

Conventional vs DSCR Loans in Vista, CA