Question 1

Can I use a DSCR loan to buy a home in Monte Sereno?

Accepted Answer

DSCR loans are for investment properties only. They won't work for a primary residence purchase.

Question 2

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require at least 620. Better rates kick in around 740 and above.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

No. Lenders qualify the property on rental income, not your personal tax filings.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional loans price lower. DSCR loans carry a rate premium because they're non-QM products. Rates vary by borrower profile and market conditions.

Question 5

Can an LLC take out a DSCR loan?

Accepted Answer

Yes. DSCR lenders regularly close loans in LLC or entity names. Conventional loans generally cannot.

Question 6

How do lenders calculate DSCR?

Accepted Answer

Divide the monthly rent by the full mortgage payment (PITI). A result above 1.0 means the property covers its own debt.

Conventional vs DSCR Loans in Monte Sereno