Question 1

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

Accepted Answer

Some lenders accept short-term rental income. Not all do. SRK CAPITAL shops across 200+ lenders to find the ones that will.

Question 2

Do DSCR loans require a larger down payment than conventional?

Accepted Answer

Yes. Most DSCR lenders require 20-25% down. Conventional investment property loans can start at 15%.

Question 3

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want a 680 minimum. Some go lower, but rates climb fast below that threshold.

Question 4

Can a self-employed borrower use a conventional loan?

Accepted Answer

Yes, but lenders use your tax return income — not gross revenue. Two years of returns are required.

Question 5

Which loan type has lower rates in Temecula?

Accepted Answer

Conventional rates run lower. DSCR lenders price in added risk from skipping income verification. Rates vary by borrower profile and market conditions.

Question 6

Can I have both a conventional and a DSCR loan at the same time?

Accepted Answer

Yes. Many investors use conventional for their primary residence and DSCR for rental properties. There's no conflict.

Conventional vs DSCR Loans in Temecula, CA