Question 1

Can I use a DSCR loan for a vacation rental near Bishop?

Accepted Answer

Yes, as long as projected rental income covers the mortgage payment. Lenders use market rent analysis or actual booking data to verify the DSCR.

Question 2

Which loan type closes faster in Bishop?

Accepted Answer

DSCR loans often close in 2-3 weeks since there's no income verification. Conventional takes 3-4 weeks due to employment checks and appraisal requirements.

Question 3

Do DSCR loans require reserves?

Accepted Answer

Most lenders want 6-12 months of mortgage payments in reserves. Conventional loans need 2-6 months depending on loan type and down payment.

Question 4

Can I get a conventional loan for an investment property in Bishop?

Accepted Answer

Yes, but you'll need 15-25% down and show enough personal income to cover the new mortgage. Rates run higher than for primary residences.

Question 5

What credit score do I need for each loan type?

Accepted Answer

Conventional loans require 620 minimum, 740+ for best rates. DSCR loans typically need 660-680 minimum with rates improving above 700.

Conventional vs DSCR Loans in Bishop: Which Works for Your Property Goals?