Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

No. DSCR loans are investment property only. You need a conventional, FHA, or VA loan for a home you plan to live in.

Question 2

What credit score does a DSCR loan require?

Accepted Answer

Most DSCR lenders want a 680 or higher. Some go down to 640, but expect a higher rate and stricter terms at lower scores.

Question 3

How is DSCR calculated?

Accepted Answer

Divide the property's gross monthly rent by its total monthly mortgage payment. A result above 1.0 means the rent covers the debt.

Question 4

Do conventional loans work for rental properties in Farmersville?

Accepted Answer

Yes, but lenders limit how many financed properties you can hold. DSCR is usually easier to scale past the first investment property.

Question 5

Which loan closes faster in Tulare County?

Accepted Answer

DSCR can close faster since there's no income verification process. Conventional timelines depend heavily on your documentation.

Conventional vs DSCR Loans in Farmersville, CA