Question 1

Can I use DSCR to buy a primary home in Woodlake?

Accepted Answer

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

Question 2

What credit score does a DSCR loan require?

Accepted Answer

Most DSCR lenders want at least a 660 credit score. Some go lower, but rates get worse fast below that threshold.

Question 3

Do I need tax returns for a DSCR loan?

Accepted Answer

No tax returns required. Lenders verify the rental income, not your personal earnings.

Question 4

Which loan has the lower interest rate?

Accepted Answer

Conventional rates are lower. DSCR loans carry a premium for skipping income verification. Rates vary by borrower profile and market conditions.

Question 5

Can I use a conventional loan for a rental property?

Accepted Answer

Yes, but expect a higher rate and larger down payment than a primary home. You're also limited on how many financed properties you can carry.

Question 6

What down payment does a DSCR loan require in Woodlake?

Accepted Answer

Most DSCR lenders require 20-25% down. Some programs go lower, but 20% is the standard starting point.

Conventional vs DSCR Loans in Woodlake, CA