Question 1

Can I use a DSCR loan for a Sonoma vacation rental?

Accepted Answer

Some lenders accept short-term rental income projections for DSCR qualification. Ask us which programs allow it — not all do.

Question 2

Do DSCR loans require a down payment?

Accepted Answer

Yes. Most DSCR lenders require 20-25% down. It's a non-QM product, so expect stricter equity requirements than conventional.

Question 3

Can I buy a primary home with a DSCR loan?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary residence, conventional is your standard path.

Question 4

Which loan has lower interest rates in Sonoma?

Accepted Answer

Conventional rates run lower than DSCR. Rates vary by borrower profile and market conditions, but DSCR carries a risk premium.

Question 5

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes — that's one of DSCR's biggest advantages for investors. Conventional loans generally require individual borrower ownership.

Question 6

What credit score do I need for each loan?

Accepted Answer

Conventional typically starts at 620. DSCR lenders usually want 620-660 minimum, with better pricing at 700+.

Conventional vs DSCR Loans in Sonoma, CA