Question 1

Can I use a DSCR loan for an Ojai short-term rental?

Accepted Answer

Yes. Many DSCR lenders accept short-term rental income projections. You'll need a market rent analysis, not just an active lease.

Question 2

What credit score do I need for each loan?

Accepted Answer

Conventional lenders require a 620 minimum. Most DSCR lenders want 640-660, though terms improve significantly above 720.

Question 3

Do DSCR loans check my income at all?

Accepted Answer

No personal income verification required. The property's rent income is the qualification. Your tax returns stay in the drawer.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Conventional loans carry lower rates for qualified borrowers. DSCR rates run higher due to investor risk pricing. Rates vary by borrower profile and market conditions.

Question 5

How much down payment does each loan require?

Accepted Answer

Conventional allows as little as 3% down for primary homes. DSCR loans typically require 20-25% down for investment properties.

Question 6

Can I use a conventional loan to buy a rental in Ojai?

Accepted Answer

Yes, but your personal debt-to-income ratio must support the payment. Rental income credit is limited and harder to use during underwriting.

Conventional vs DSCR Loans in Ojai, CA