Question 1

Can I use a DSCR loan to buy my first rental in Turlock?

Accepted Answer

Yes. DSCR loans are made for investment properties. You typically need 20-25% down and a property that covers its own mortgage payment.

Question 2

Do conventional loans work for investment properties?

Accepted Answer

They do, but you still qualify on personal income. Lenders also count only a portion of rental income, which tightens your debt ratios.

Question 3

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require at least 660-680. Better scores get better rates, just like conventional.

Question 4

Which loan closes faster?

Accepted Answer

DSCR loans can move quickly since there's no income verification. Conventional timelines depend on how clean your financial docs are.

Question 5

Can a LLC get a DSCR loan in California?

Accepted Answer

Yes. DSCR lenders routinely close loans in LLC name. That's one reason investors prefer them for building a portfolio.

Question 6

Are DSCR loans considered non-QM?

Accepted Answer

Yes. DSCR is a non-QM product, meaning it falls outside standard qualified mortgage guidelines. More lender flexibility, but rates reflect that.

Conventional vs DSCR Loans in Turlock, CA