Question 1

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

Accepted Answer

Some lenders allow it using projected or actual STR income. Not all DSCR programs accept short-term rental properties, so lender selection matters.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require 660-680 minimum. Higher scores get better rates, and terms vary by lender.

Question 3

What's the minimum down payment for each loan?

Accepted Answer

Conventional can go as low as 3% for primary homes. DSCR loans typically require 20-25% down.

Question 4

Can I use a DSCR loan under an LLC?

Accepted Answer

Yes. DSCR loans commonly close in LLC names. Conventional loans cannot be made to LLCs.

Question 5

Which loan has lower rates right now?

Accepted Answer

Conventional rates are lower than DSCR rates for qualified borrowers. Rates vary by borrower profile and market conditions.

Question 6

Do DSCR loans work if the property needs renovation?

Accepted Answer

No — DSCR lenders want a stabilized, rentable property. A fix-and-flip or hard money loan fits renovation projects better.

Conventional vs DSCR Loans in Goleta, CA