Question 1

Can I use DSCR loans for my primary residence in Yuba City?

Accepted Answer

No. DSCR loans only work for investment properties that generate rental income. You need conventional or FHA for a primary home.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional loans require 620 minimum for most lenders. DSCR lenders typically want 660-680 depending on the property's cash flow.

Question 3

Do DSCR loans take longer to close than conventional?

Accepted Answer

No. DSCR loans often close faster because lenders skip income verification. You avoid the back-and-forth over tax returns and pay stubs.

Question 4

Can I refinance from conventional to DSCR later?

Accepted Answer

Yes. Investors often refinance to DSCR once they own multiple properties and conventional DTI limits block new purchases.

Question 5

Which loan type offers better cash-out refinance options?

Accepted Answer

DSCR loans allow higher cash-out amounts because they ignore your DTI. Conventional caps cash-out based on your income ratios.

Conventional vs DSCR Loans in Yuba City: Which Fits Your Property Strategy?