Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. You need rental income to qualify — not your personal income.

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 expect a higher rate.

Question 3

Do conventional loans work for rental properties?

Accepted Answer

Yes, up to 4 units. But lenders count your personal debt load, so qualifying gets harder with multiple properties.

Question 4

How is the DSCR ratio calculated?

Accepted Answer

Divide the monthly rent by the total mortgage payment. A ratio of 1.0 means rent covers the payment exactly.

Question 5

Which loan closes faster in Cotati?

Accepted Answer

DSCR loans often close faster. No income docs means fewer conditions to clear before closing.

Question 6

Can I refinance a rental property with a DSCR loan?

Accepted Answer

Yes. DSCR refinances are common for investors who can't show enough income on tax returns to qualify conventionally.

Conventional vs DSCR Loans in Cotati, CA