If your DTI will allow and you otherwise qualify for a conventional loan, they usually offer better rates and terms compared to a nonQM/commercial type loan. You mentioned that you do intend to occupy it, so a second home loan might be more beneficial. They used to have much better pricing, but people took advantage (doing the opposite of what you're doing - not intending to occupy the property but acting like they are to get more favorable terms) and now they aren't so different from a conventional investment loan. If you decide to go the DSCR route (a popular option for STRs), make sure your lender knows it's going to be used as a short term rental. Not all will use STR data For the appraisal. There's a chance they'd look at market rents for comparable properties that are rented on a long term basis, which could cause trouble when it comes to meeting the ratio requirements. I recommend staying with conventional loans as long as you can qualify - it'll save you $$$.
