Question 1

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

Accepted Answer

Yes, many lenders accept short-term rental income for DSCR qualification. Some require a market rent analysis rather than actual lease agreements.

Question 2

Do DSCR loans have higher rates than conventional?

Accepted Answer

Generally yes. DSCR loans carry more lender risk. Rates vary by borrower profile and market conditions, but expect a premium over conventional pricing.

Question 3

Can I use a conventional loan to buy a rental property?

Accepted Answer

Yes, with 15-25% down for investment properties. You must qualify using your personal income, not the rental income.

Question 4

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require 620-640 minimum. Higher credit scores typically get better pricing and terms.

Question 5

Which loan closes faster in Siskiyou County?

Accepted Answer

DSCR loans often close faster since there's no income verification process. Fewer documents means fewer delays.

Question 6

Can an LLC get a DSCR loan in California?

Accepted Answer

Yes. DSCR loans are commonly structured under LLCs. Conventional loans almost never allow entity vesting.

Conventional vs DSCR Loans in Dunsmuir, CA