Question 1

Can I use DSCR for a short-term Calistoga rental?

Accepted Answer

Yes. Many DSCR lenders accept projected short-term rental income. Some use Airbnb or AirDNA data to support the numbers.

Question 2

What credit score does DSCR require?

Accepted Answer

Most DSCR lenders want 660-680 minimum. Conventional goes as low as 620, but better rates start at 740.

Question 3

Do I need tax returns for a DSCR loan?

Accepted Answer

No. DSCR qualification is based on the property's income, not yours. No W-2s or tax returns required.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional typically carries lower rates. DSCR rates run higher to offset the reduced income documentation. Rates vary by borrower profile and market conditions.

Question 5

Can I use conventional financing for an investment property?

Accepted Answer

Yes, but lenders require 15-25% down on investment properties. Rates are also higher than for primary residences.

Question 6

What DSCR ratio do lenders want to see?

Accepted Answer

Most lenders require 1.0 or above. Some allow 0.75 with a larger down payment or stronger credit.

Conventional vs DSCR Loans in Calistoga, CA