Question 1

Can I use a DSCR loan to buy a primary home in Simi Valley?

Accepted Answer

No. DSCR loans are for investment properties only. Owner-occupied purchases require conventional or government-backed financing.

Question 2

Which loan has a lower interest rate?

Accepted Answer

Conventional rates are lower. DSCR loans carry a premium for the no-income-doc structure. Rates vary by borrower profile and market conditions.

Question 3

Do DSCR lenders look at my credit score?

Accepted Answer

Yes. Most DSCR lenders want 620-680 minimum. Higher scores get better pricing on rate and down payment requirements.

Question 4

Can I buy under an LLC with a DSCR loan?

Accepted Answer

Yes, most DSCR lenders allow LLC vesting. Conventional loans almost never allow it for residential properties.

Question 5

What DSCR ratio do Simi Valley rental properties need?

Accepted Answer

Most lenders want 1.1 or higher. That means rent must exceed the mortgage payment by at least 10%.

Question 6

How much down payment does each loan require?

Accepted Answer

Conventional can go as low as 3% for primary homes. DSCR loans typically require 20-25% down on investment properties.

Conventional vs DSCR Loans in Simi Valley