Question 1

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

Accepted Answer

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

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional loans start at 620. Most DSCR lenders want 680 or higher. Better scores get better rates on both.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No. That's the point. Approval is based on the property's rent-to-payment ratio, not your personal income documents.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional rates are typically lower. DSCR is a non-QM product, so lenders price in more risk. Rates vary by borrower profile and market conditions.

Question 5

How much do I need to put down for a DSCR loan in Cupertino?

Accepted Answer

Plan for 20-25% down. Cupertino property values are high, so that's a significant cash requirement. Have reserves ready too.

Question 6

Can a self-employed borrower use a conventional loan?

Accepted Answer

Yes, but lenders will average your last two years of net income from tax returns. If write-offs reduce that number, DSCR may qualify you for more.

Conventional vs DSCR Loans in Cupertino