Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, you need conventional or government-backed financing.

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional lenders typically require 620. Most DSCR lenders want at least 680, sometimes higher for lower down payments.

Question 3

Does a DSCR loan show up on my personal credit?

Accepted Answer

Usually yes, unless structured through an LLC with commercial underwriting. Most DSCR wholesale lenders still report to personal credit.

Question 4

Which loan is faster to close?

Accepted Answer

DSCR can close faster — no tax return review or employer verification. Fewer income docs means fewer conditions to clear.

Question 5

Can I scale a rental portfolio using DSCR loans?

Accepted Answer

Yes. DSCR lenders don't cap financed properties the way conventional guidelines do. It's built for investors adding multiple rentals.

Question 6

Which loan has the lower interest rate?

Accepted Answer

Conventional rates run lower for qualified borrowers. DSCR carries a rate premium for the flexibility it offers. Rates vary by borrower profile and market conditions.

Conventional vs DSCR Loans in Fillmore, CA