Question 1

Can I use projected rent for a DSCR loan in Paso Robles?

Accepted Answer

Yes. Lenders use appraisal rent surveys to project income on vacant properties or new purchases. The projected rent must still cover 1.0-1.25x the payment.

Question 2

Do conventional loans allow vacation rentals?

Accepted Answer

Most conventional lenders restrict short-term rentals. DSCR loans accept vacation rental income if you provide booking history or rental comps from the area.

Question 3

Which loan type closes faster?

Accepted Answer

DSCR loans close 5-10 days faster on average. No tax return review means fewer underwriter delays.

Question 4

Can I refinance from conventional to DSCR?

Accepted Answer

Yes. Investors refinance to DSCR when they want to pull cash out or simplify documentation on future purchases. Rate increase typically offsets the convenience.

Question 5

What credit score do I need for each option?

Accepted Answer

Conventional starts at 620 but pricing improves dramatically above 680. DSCR typically requires 660 minimum, with best rates at 700+.

Conventional vs DSCR Loans in Paso Robles: Which Fits Your Investment Strategy?