Question 1

Can I use a DSCR loan on my first rental property?

Accepted Answer

Yes, DSCR loans don't require prior landlord experience. You need 20-25% down and a property that generates enough rent to cover the mortgage.

Question 2

Why would I pay more for a DSCR loan if conventional rates are lower?

Accepted Answer

DSCR approves deals conventional lenders reject. If your income doesn't support more debt or you're self-employed with tax write-offs, the rate difference is worth the approval.

Question 3

Do both loan types work for Campbell condos and single-family homes?

Accepted Answer

Yes, both cover standard residential investment properties. DSCR lenders may be pickier about condo projects and HOA financials than conventional underwriters.

Question 4

How does the DSCR ratio affect my rate?

Accepted Answer

Higher ratios earn better pricing. A 1.25 DSCR gets a lower rate than 1.0. Lenders reward properties with stronger cash flow.

Question 5

Can I refinance from DSCR to conventional later?

Accepted Answer

Absolutely. Many investors start with DSCR for fast approval, then refinance to conventional once income allows. You'll need to qualify under standard debt ratios at that point.

Conventional vs DSCR Loans in Campbell: Which Fits Your Strategy?