Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. Primary residences require conventional, FHA, VA, or another owner-occupant loan.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require a 680 minimum. Some go lower, but expect higher rates and stricter terms below that threshold.

Question 3

Does conventional or DSCR have better rates for rentals?

Accepted Answer

Conventional typically prices lower for investment properties. DSCR trades a slightly higher rate for easier qualification. Rates vary by borrower profile and market conditions.

Question 4

How is the DSCR ratio calculated?

Accepted Answer

Divide the monthly gross rent by the full mortgage payment (PITIA). A result of 1.0 means rent covers the payment exactly.

Question 5

Can I use rental income to qualify for a conventional loan?

Accepted Answer

Yes, but with limits. Lenders typically count 75% of documented rental income and still verify your personal income and debts.

Question 6

Which loan lets me buy more properties in Manteca?

Accepted Answer

DSCR scales better. It doesn't count against your personal debt-to-income ratio, so you can add properties without hitting conventional lending caps.

Conventional vs DSCR Loans in Manteca, CA