Refinancing primarily home using DSCR and buy a house for primary with 5-10% d

[Bao Nguyen]

Hi everyone,

I’m looking for some advice from those who have done something similar.

Here’s my situation:

• I currently own and live in my primary residence.
• I’m considering refinancing it using a DSCR (Debt Service Coverage Ratio) loan, which would officially turn it into a rental property.
• After that, I would purchase a new primary residence with 5–10% down (conventional loan or FHA, depending on what fits best).

[JooYung Choi]

Not a lender, but you shouldn't need to refinance your primary residence to a DSCR to be able to purchase your next home. Lenders will count 75% of monthly rents to your DTI so as long as you can show them a lease / security deposit, you will be able to buy your next primary residence (assuming everything fits in your DTI)