Question 1

Can I use a DSCR loan to buy a vacation rental in Rio Vista?

Accepted Answer

Yes. DSCR works well for short-term rentals if the projected rent supports the payment. Some lenders use Airbnb income history to calculate DSCR.

Question 2

Which loan has stricter credit requirements?

Accepted Answer

Both typically require 620–640 minimum credit. DSCR lenders sometimes go higher — 660 to 680 is common for better pricing.

Question 3

Do DSCR loans have higher interest rates than conventional?

Accepted Answer

Yes, DSCR rates run higher. You're trading income flexibility for a rate premium. Rates vary by borrower profile and market conditions.

Question 4

Can I use conventional financing for a rental property?

Accepted Answer

You can. Conventional allows investment property purchases, but lenders add a rate adjustment and require more reserves than for a primary home.

Question 5

What if my Rio Vista rental doesn't hit a 1.0 DSCR?

Accepted Answer

Some lenders allow DSCR below 1.0 with a larger down payment. Expect stricter terms and fewer lender options below that threshold.

Conventional vs DSCR Loans in Rio Vista, CA