Question 1

Can I use a DSCR loan for a primary residence in Santa Clara?

Accepted Answer

No. DSCR loans are investment property only. They're not eligible for owner-occupied homes.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require a 680 minimum. Higher scores get better pricing.

Question 3

How much do I need to put down on a DSCR loan?

Accepted Answer

Expect 20–25% down on most DSCR programs. Some lenders go up to 30% for short-term rentals.

Question 4

Do conventional loans allow rental income to qualify?

Accepted Answer

Yes, but with limits. Lenders typically count 75% of documented rental income after expenses.

Question 5

Can I close a DSCR loan in an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Conventional loans almost never permit this.

Question 6

Which loan is faster to close in Santa Clara?

Accepted Answer

DSCR loans often close faster. Less income documentation means fewer conditions to clear.

Conventional vs DSCR Loans in Santa Clara, CA