Question 1

Can I use a DSCR loan for a primary home in Sunnyvale?

Accepted Answer

No. DSCR loans are investment property only. For a primary residence, you need conventional or another owner-occupant program.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least 680. Conventional lenders start at 620, but better rates kick in above 740.

Question 3

Do DSCR loans require proof of employment?

Accepted Answer

No employment verification required. The rental income on the property is what qualifies you.

Question 4

Which loan has a lower down payment requirement?

Accepted Answer

Conventional can go as low as 3% down for qualified buyers. DSCR loans typically require 20-25% minimum.

Question 5

Can an LLC take out a DSCR loan in California?

Accepted Answer

Yes. DSCR loans are one of the few products that allow LLC ownership at closing. Conventional loans do not.

Question 6

Are DSCR rates higher than conventional rates?

Accepted Answer

Yes, always. DSCR lenders price in more risk. Rates vary by borrower profile and market conditions.

Conventional vs DSCR Loans in Sunnyvale, CA