Question 1

Can I use DSCR for a primary residence in Guadalupe?

Accepted Answer

No. DSCR loans are investment-property only. You must rent the property to qualify based on rental income instead of personal income.

Question 2

Which loan type closes faster?

Accepted Answer

DSCR loans typically close 5-7 days quicker. Skipping employment and income verification removes the longest underwriting delays.

Question 3

Do both loans work for multi-unit properties?

Accepted Answer

Yes. Conventional covers up to 4 units. DSCR handles single-family to small apartment buildings with no unit cap at most lenders.

Question 4

What credit score do I actually need?

Accepted Answer

Conventional starts at 620 for investment properties. DSCR lenders typically want 660-680 minimum, though some accept 640 with larger down payments.

Question 5

Can I get a DSCR loan with negative cash flow?

Accepted Answer

Yes, if you put more down. Ratios below 1.0 require 25-30% down payment to offset the monthly shortfall.

Conventional vs DSCR Loans in Guadalupe: Which Fits Your Investment Strategy?