Question 1

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

Accepted Answer

Some lenders allow it using projected or actual Airbnb income. Not every DSCR lender accepts short-term rental data, so lender selection matters.

Question 2

Do DSCR loans require a down payment?

Accepted Answer

Most DSCR lenders require 20-25% down. That's higher than conventional minimums but standard for investment property financing.

Question 3

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least a 680 credit score. Some go down to 660, but rates get worse as the score drops.

Question 4

Can I buy a primary home with a DSCR loan?

Accepted Answer

No. DSCR loans are for investment properties only. Owner-occupied purchases require conventional, FHA, or another QM loan type.

Question 5

Which loan closes faster in Monterey?

Accepted Answer

DSCR loans often close faster because there's no income verification. No tax returns means fewer documents holding up underwriting.

Question 6

Can an LLC take title with a conventional loan?

Accepted Answer

No. Conventional loans require individual borrowers. DSCR loans can close in an LLC, which is a major advantage for portfolio investors.

Conventional vs DSCR Loans in Monterey, CA