Question 1

Can I use a DSCR loan to buy a primary home in Dixon?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary residence, you need a conventional or government-backed loan.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 680 or higher. Some go to 660, but pricing gets worse fast below 700.

Question 3

Does conventional financing allow rental properties?

Accepted Answer

Yes, up to a point. Conventional works for 1-4 unit investment properties, but lenders verify your personal income thoroughly.

Question 4

How is DSCR calculated?

Accepted Answer

Divide the property's gross monthly rent by its total monthly payment — principal, interest, taxes, and insurance. Above 1.0 means the rent covers the debt.

Question 5

Which loan closes faster in Dixon?

Accepted Answer

DSCR loans often close faster because there's no income verification process. No tax returns means fewer conditions to clear.

Question 6

Can I get a lower rate with conventional if I have great credit?

Accepted Answer

Yes. Conventional pricing rewards 740+ scores and 20% down significantly. DSCR rates don't move as much with credit improvements.

Conventional vs DSCR Loans in Dixon, CA