Question 1

Can I use a conventional loan for a rental property?

Accepted Answer

Yes. Conventional can work for some 1- to 4-unit rentals, though the down payment and documentation are usually stricter than on a primary-home loan.

Question 2

Do DSCR loans require tax returns?

Accepted Answer

Usually no. That is a big part of the appeal. The lender is focused on the property's rent instead of your personal income documents.

Question 3

Which loan has a lower interest rate?

Accepted Answer

Conventional usually does. DSCR generally costs more because the lender is taking a different kind of documentation risk. Rates vary by borrower profile and market conditions.

Question 4

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want around a 680. Some go lower, but pricing usually gets much worse below 700.

Question 5

Can I buy a short-term rental with a DSCR loan?

Accepted Answer

Sometimes. Some lenders allow short-term-rental income, but many still want to underwrite the property using long-term market rent.

Question 6

Is a conventional loan faster to close?

Accepted Answer

Usually, yes, if the borrower is well documented. DSCR can move quickly too, but the appraisal and rent analysis still have to hold up.

In Alameda, Conventional and DSCR Loans Belong in Different Conversations