Question 1

Can I use a conventional loan to buy a rental property?

Accepted Answer

Yes, but lenders cap how many financed properties you can hold. DSCR loans don't carry that same restriction.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 660 or higher. Some go lower, but rates climb fast when credit dips.

Question 3

Do DSCR loans require a down payment?

Accepted Answer

Yes. Expect 20–25% down on most DSCR products. Lenders want skin in the game on investment properties.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional rates run lower. DSCR is a non-QM product, so lenders price in more risk. Rates vary by borrower profile and market conditions.

Question 5

Can a self-employed investor qualify for a conventional loan?

Accepted Answer

Yes, but it's harder. Lenders average two years of tax returns, and write-offs often reduce qualifying income significantly.

Question 6

What DSCR ratio do Ventura rental properties need?

Accepted Answer

Most lenders require 1.0 or better. Some allow as low as 0.75 with a larger down payment and stronger credit.

Conventional vs DSCR Loans in San Buenaventura