Question 1

Can I use a DSCR loan for a primary home?

Accepted Answer

No. DSCR is investment property only. Use conventional for the home you live in.

Question 2

What DSCR ratio do lenders require?

Accepted Answer

Most lenders want a ratio of 1.0 or higher. That means rent covers the full mortgage payment.

Question 3

Do conventional loans work for rental properties?

Accepted Answer

Yes, up to a point. Fannie Mae allows up to 10 financed properties, but guidelines tighten after four.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional almost always wins on rate. DSCR lenders charge more for the flexible qualification. Rates vary by borrower profile and market conditions.

Question 5

Can an LLC take title on a conventional loan?

Accepted Answer

No. Conventional loans require individual borrowers. DSCR loans allow LLC ownership.

Question 6

Is DSCR harder to qualify for than conventional?

Accepted Answer

Different, not harder. Conventional checks your income. DSCR checks the property's income. Each has its own hurdle.

Conventional vs DSCR Loans in Camarillo, CA