Question 1

Can I use a DSCR loan for a vacation rental in Pacific Grove?

Accepted Answer

Yes. DSCR lenders accept short-term rental income. You'll need documentation of projected or actual rental income to support the DSCR calculation.

Question 2

Do DSCR loans check my credit score?

Accepted Answer

Yes, credit still matters. Most DSCR lenders require a 680 minimum, and better scores get better rates.

Question 3

What's the minimum down payment for a conventional loan here?

Accepted Answer

As low as 3% for a primary residence. Investment properties financed conventionally typically require at least 15-20% down.

Question 4

Is PMI required on conventional loans?

Accepted Answer

Only if you put down less than 20%. Once you hit 20% equity, you can request PMI removal.

Question 5

Which loan closes faster?

Accepted Answer

DSCR loans often close faster. No tax returns or pay stubs means fewer documents to chase down.

Question 6

Can I switch from DSCR to conventional later?

Accepted Answer

You can refinance into a conventional loan if the property becomes your primary residence and you meet income qualification standards.

Conventional vs DSCR Loans in Pacific Grove, CA