Question 1

Can I use a DSCR loan for a primary residence?

Accepted Answer

No. DSCR loans are investment property products only. For a primary residence, conventional financing is the standard path.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 680 or higher. Some go down to 660, but rates climb as the score drops.

Question 3

Does a conventional loan work for short-term rentals?

Accepted Answer

Yes, but with limits. Lenders may restrict how you count projected rental income. DSCR lenders are often more flexible with STR income.

Question 4

Can I close a DSCR loan in an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Conventional lenders almost never do for investment properties.

Question 5

Which loan closes faster in Shasta Lake?

Accepted Answer

DSCR loans often close faster for investors since there's no income doc review. Conventional timelines depend on full underwriting.

Question 6

How is DSCR calculated?

Accepted Answer

Divide the property's monthly rent by the total mortgage payment. A ratio above 1.0 means the rent covers the loan.

Conventional vs DSCR Loans in Shasta Lake, CA