Question 1

Can I use a DSCR loan on my first investment property?

Accepted Answer

Yes, DSCR loans work for first-time investors. You just need 20-25% down and the property must generate enough rent to cover its payment.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional requires 620 minimum, though 680+ gets better pricing. DSCR lenders typically want 660-680 for investment properties.

Question 3

Do DSCR loans require an appraisal in Live Oak?

Accepted Answer

Yes, both loan types require full appraisals. DSCR lenders also need a rent schedule showing market rents for the property type.

Question 4

Which loan type closes faster?

Accepted Answer

DSCR loans typically close in 18-21 days versus 25-30 for conventional. Less documentation means fewer delays once you have rent comps.

Question 5

Can I refinance from DSCR to conventional later?

Accepted Answer

Yes, many investors refinance to conventional once they have two years of rental income on their tax returns. Rates drop significantly.

Conventional Loans vs DSCR Loans in Live Oak: Which Fits Your Investment Strategy?