Loading
in San Leandro, CA
San Leandro sits in one of the Bay Area's most active rental markets. That creates two very different borrower profiles — owner-occupants and investors.
Conventional loans work off your personal income. DSCR loans work off the property's rent. Knowing which fits your deal can save you months of headaches.
Conventional loans are the standard for primary home purchases. Lenders look at your income, credit, and debt-to-income ratio to qualify you.
You'll typically need a 620 credit score minimum. Put down 20% and you skip private mortgage insurance entirely.
DSCR loans qualify you based on rental income, not your tax returns. If the property's rent covers its debt payment, that's the core test.
Most lenders want a DSCR of 1.0 or higher — rent equals or exceeds the monthly payment. Self-employed investors love this product.
The biggest split is qualification method. Conventional underwrites you. DSCR underwrites the property's cash flow.
Bankrate flagged rates at 6.19% as of March 2026 — geopolitical pressure pushed them up. DSCR rates run higher than conventional, so that gap matters for investor returns. Rates vary by borrower profile and market conditions.
Buying a primary home or a first rental with strong W-2 income? Go conventional. You'll get the best rate and the lowest down payment requirement.
Scaling a portfolio, self-employed, or buying through an entity? DSCR is built for that. The higher rate is the trade-off for skipping income verification.
No. DSCR is investment property only. For a primary residence, you need conventional, FHA, or another owner-occupant product.
Most DSCR lenders want 660 or higher. Some go to 640, but you'll pay for it in rate.
Yes, but lenders cap most borrowers at 10 financed properties. DSCR has no such hard cap.
DSCR often closes faster. No tax return review means less back-and-forth with underwriting.
Yes. That's one of DSCR's biggest advantages — conventional loans require you to hold title personally.
Divide the property's monthly gross rent by the full monthly payment (PITIA). A ratio of 1.0 means rent equals payment.