Question 1

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

Accepted Answer

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

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional typically requires 620 minimum. DSCR lenders usually want 620-660 depending on the deal.

Question 3

Do DSCR loans require a larger down payment?

Accepted Answer

Yes. Most DSCR lenders require 20-25% down. Conventional can go as low as 3% for primary homes.

Question 4

Can I hold a DSCR loan in my LLC?

Accepted Answer

Yes, and that's a big reason investors prefer it. Conventional loans almost never allow LLC ownership.

Question 5

Which loan is faster to close in Lathrop?

Accepted Answer

DSCR can close faster since there's no income verification. Conventional timelines depend on how complex your tax returns are.

Conventional vs DSCR Loans in Lathrop, CA