Question 1

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

Accepted Answer

No. DSCR is for investment properties only. Use a conventional loan for any home you plan to occupy.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want a 680 or higher. Some go down to 660, but you'll pay for it in rate.

Question 3

Do conventional loans work for rental properties in Yreka?

Accepted Answer

Yes, up to four units. Beyond that, DSCR or commercial financing typically takes over.

Question 4

Which loan has a lower down payment requirement?

Accepted Answer

Conventional can go as low as 3% for primary homes. DSCR typically requires 20-25% down on investment properties.

Question 5

Does being self-employed hurt my conventional loan chances?

Accepted Answer

It complicates it. Lenders average two years of tax returns. Heavy write-offs can kill your qualifying income fast.

Question 6

How do Yreka rental yields affect DSCR approval?

Accepted Answer

Lower rents relative to purchase price make the DSCR ratio harder to hit. Run the numbers before you commit.

Conventional vs DSCR Loans in Yreka, CA