Question 1

Can I use a DSCR loan to buy a home in Waterford to live in?

Accepted Answer

No. DSCR loans are for investment properties only. Primary residences require conventional or government-backed financing.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least a 660-680 score. Conventional loans can go as low as 620 for qualified borrowers.

Question 3

Does a DSCR loan require tax returns?

Accepted Answer

No tax returns required. The lender evaluates the property's rental income against the mortgage payment instead.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional loans typically carry lower rates. DSCR loans price higher due to their investor focus and non-QM structure. Rates vary by borrower profile and market conditions.

Question 5

Can I have both loan types at the same time?

Accepted Answer

Yes. Many investors carry a conventional loan on their primary home and DSCR loans on their rental properties.

Conventional vs DSCR Loans in Waterford, CA