Question 1

Can I use a DSCR loan for a Woodland primary residence?

Accepted Answer

No. DSCR loans require the property to be investment rental property. If you plan to occupy it, use a conventional loan.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Conventional loans need 620 minimum. DSCR loans typically require 660-680, though some lenders accept lower scores with larger down payments.

Question 3

How do I calculate DSCR for a Woodland rental?

Accepted Answer

Divide monthly market rent by the total monthly housing payment. A ratio of 1.0 or higher usually qualifies. Most lenders prefer 1.1 or better.

Question 4

Which loan type has faster closing times?

Accepted Answer

DSCR loans often close faster due to no income verification. Conventional loans require employment checks and tax return reviews that add time.

Question 5

Can I refinance a conventional loan into a DSCR loan?

Accepted Answer

Yes. Investors often refinance conventional loans into DSCR loans after converting properties to rentals. The property must generate sufficient rental income.

Conventional vs DSCR Loans in Woodland: Which Fits Your Investment Strategy?