Question 1

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

Accepted Answer

Yes. Many DSCR lenders accept short-term rental income using market data. Ask about Airbnb-friendly programs — they exist.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require 680 minimum. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

Can I use a conventional loan to buy an investment property?

Accepted Answer

Yes, up to 10 financed properties under Fannie Mae. Expect a higher rate and 15-25% down on non-owner-occupied purchases.

Question 4

Which loan closes faster in Santa Barbara?

Accepted Answer

DSCR loans skip income verification, so they often close faster. No tax returns means fewer conditions to clear.

Question 5

Do DSCR loans work for LLCs?

Accepted Answer

Yes — that's one reason investors prefer them. Conventional loans typically require individual borrowers, not entities.

Question 6

Which loan has lower monthly payments?

Accepted Answer

Conventional usually does, thanks to lower rates. DSCR's higher rate means a bigger payment on the same loan amount.

Conventional vs DSCR Loans in Santa Barbara