Question 1

Can I use a DSCR loan for a short-term rental in Carmel?

Accepted Answer

Yes. Many DSCR lenders accept short-term rental income with platforms like Airbnb. Some use projected income — ask your lender upfront.

Question 2

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 pricing adjustments at lower scores.

Question 3

Do conventional loans work for investment properties?

Accepted Answer

Yes, but you're limited to 10 financed properties and need full income docs. Down payment is typically 15-25% for non-primary use.

Question 4

Which loan closes faster in Carmel?

Accepted Answer

Both can close in 21-30 days. DSCR skips income verification, which can actually speed things up for investors.

Question 5

Are DSCR rates higher than conventional rates?

Accepted Answer

Yes. DSCR loans are non-QM products and price accordingly. Rates vary by borrower profile and market conditions.

Question 6

Can a self-employed buyer use a conventional loan in Carmel?

Accepted Answer

Yes, but lenders will require two years of tax returns. If write-offs reduce your taxable income heavily, DSCR may be the cleaner path.

Conventional vs DSCR Loans in Carmel By The Sea