Question 1

Can I use a DSCR loan for a primary residence?

Accepted Answer

No. DSCR loans are investment property only. Use conventional financing for a home you plan to live in.

Question 2

What credit score does a DSCR loan require?

Accepted Answer

Most DSCR lenders want 660 or higher. Some go to 640, but pricing improves significantly above 700.

Question 3

Do conventional loans allow rental properties?

Accepted Answer

Yes, up to a limit. Fannie Mae allows conventional financing on 1-4 unit investment properties with stricter down payment and reserve requirements.

Question 4

How is the DSCR ratio calculated?

Accepted Answer

Divide gross monthly rent by the full mortgage payment (PITIA). A result of 1.0 means rent equals payment. Above 1.25 is strong.

Question 5

Which loan closes faster in Tulare?

Accepted Answer

DSCR loans often close faster. No tax returns or income analysis means fewer conditions and less back-and-forth with underwriting.

Question 6

Can a self-employed borrower use conventional instead of DSCR?

Accepted Answer

Yes, but your tax returns have to show enough net income. Many self-employed investors write off too much — DSCR avoids that problem entirely.

Conventional vs DSCR Loans in Tulare, CA