Question 1

Can I use a DSCR loan to buy near Yosemite as a short-term rental?

Accepted Answer

Yes. Many DSCR lenders accept short-term rental income projections. Some require market rent estimates from an appraiser.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require 660 or higher. Some go down to 640, but expect a higher rate at the lower end.

Question 3

Do conventional loans allow investment properties?

Accepted Answer

Yes, but you still qualify on personal income and debts. Investment property rates also run higher than primary home rates.

Question 4

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes. DSCR loans allow LLC vesting. Conventional loans do not — that is a key structural advantage for investors.

Question 5

Which loan has a lower down payment requirement?

Accepted Answer

Conventional can go as low as 3% for primary homes. DSCR loans typically require 20-25% down for investment properties.

Question 6

Does rental income count toward a conventional loan?

Accepted Answer

Sometimes. Lenders may count 75% of documented rental income if it appears on your tax returns for at least one year.

Conventional vs DSCR Loans in Mariposa, CA