Question 1

Can I use a DSCR loan on a short-term rental in Chico?

Accepted Answer

Yes. Many DSCR lenders accept short-term rental income projections. Some require an Airbnb history or market rent analysis.

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional typically requires 620 minimum. DSCR lenders usually want 660–680 minimum, with best pricing at 720+.

Question 3

Can I buy under an LLC with either loan?

Accepted Answer

DSCR loans allow LLC vesting. Conventional loans generally require the borrower to take title personally.

Question 4

Which loan has a lower down payment?

Accepted Answer

Conventional allows as low as 3% for primary homes. DSCR typically requires 20–25% down on investment properties.

Question 5

Do DSCR loans check my tax returns?

Accepted Answer

No. DSCR lenders qualify the property, not you. No tax returns, no W-2s, no personal income docs required.

Question 6

Which loan is faster to close?

Accepted Answer

DSCR loans often close faster for investors — less personal documentation means fewer conditions. Rates vary by borrower profile and market conditions.

Conventional vs DSCR Loans in Chico, CA