Question 1

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

Accepted Answer

Some DSCR programs accept projected short-term rental income. Lenders vary widely on this — we'll find one that works for your property.

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional typically requires 620 minimum. DSCR lenders often want 640–680 depending on the program.

Question 3

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes. Most DSCR programs allow LLC vesting. Conventional loans almost never do — they require individual borrowers.

Question 4

Which loan has the lower interest rate?

Accepted Answer

Conventional rates are lower for qualified borrowers. DSCR carries a rate premium for the flexibility it offers. Rates vary by borrower profile and market conditions.

Question 5

Do conventional loans work for investment properties?

Accepted Answer

Yes, but expect 15–25% down and stricter reserve requirements. Rental income counting toward qualification is also limited.

Question 6

How fast can a DSCR loan close compared to conventional?

Accepted Answer

DSCR can close as fast as 21–30 days with a clean file. No tax return review speeds things up significantly.

Conventional vs DSCR Loans in Portola, CA