Question 1

Can I use a DSCR loan to buy my primary home in Santa Paula?

Accepted Answer

No. DSCR loans are investment property only. For a primary residence, you need conventional or a government-backed loan.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least a 680 credit score. Some go lower, but expect the rate to reflect the added risk.

Question 3

Do conventional loans allow rental properties?

Accepted Answer

Yes. You can finance up to 10 conventional investment properties. Each one factors into your debt-to-income ratio, though.

Question 4

What DSCR ratio do lenders require?

Accepted Answer

A ratio of 1.0 means rent covers the mortgage exactly. Most lenders prefer 1.1 or higher. Below 1.0 is possible but rare.

Question 5

Which loan closes faster in Santa Paula?

Accepted Answer

DSCR loans skip income verification, so they often close faster. Conventional underwriting digs deeper and can take longer.

Question 6

Are DSCR rates higher than conventional rates?

Accepted Answer

Generally yes. DSCR is a non-QM product with more lender risk built in. Rates vary by borrower profile and market conditions.

Conventional vs DSCR Loans in Santa Paula, CA