Question 1

Can I get a DSCR loan with no rental history on the property?

Accepted Answer

Yes. We use market rents from a licensed appraiser's rent schedule. No actual tenant required at closing.

Question 2

Do conventional loans require more down on investment properties?

Accepted Answer

Yes. Conventional requires 25% down for a single rental, 30% for additional properties. DSCR typically starts at 20-25%.

Question 3

Which loan type closes faster in Red Bluff?

Accepted Answer

DSCR often closes quicker because there's no employment verification. Conventional takes longer if you're self-employed or have complex income.

Question 4

Can I use DSCR for a fix-and-flip property?

Accepted Answer

No. DSCR is for rental holds only. Fix-and-flip needs a bridge or hard money loan with a different structure.

Question 5

What happens if my DSCR ratio is below 1.0?

Accepted Answer

You can still qualify with ratios as low as 0.75, but expect higher rates or larger down payments. Some lenders won't go below 1.0.

Conventional vs DSCR Loans in Red Bluff: Which Fits Your Investment Strategy?