Question 1

Can I use DSCR for a short-term rental in Point Arena?

Accepted Answer

Yes. Many lenders accept short-term rental income for DSCR. Some use Airbnb data to project income.

Question 2

Do conventional loans allow rental properties?

Accepted Answer

Yes, up to 10 financed properties. But you must qualify using your personal debt-to-income ratio.

Question 3

Which loan has a lower interest rate?

Accepted Answer

Conventional rates are lower. DSCR lenders charge a premium for skipping income verification. 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 680 or higher. Some go to 660, but expect a higher rate.

Question 5

Can a self-employed buyer use a conventional loan?

Accepted Answer

Yes, with two years of tax returns. If write-offs tank your taxable income, DSCR may work better.

Question 6

How much do I need to put down for each loan type?

Accepted Answer

Conventional can go as low as 3% for primary homes. DSCR typically requires 20-25% down.

Conventional vs DSCR Loans in Point Arena, CA