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in Williams, CA
Williams investors face a clear choice: conventional loans for owner-occupied properties or DSCR for pure rental plays. The distinction matters because each loan looks at different approval criteria entirely.
Conventional lenders scrutinize your W-2 income and debt ratios. DSCR lenders only care if the rental property's income covers the mortgage payment.
Conventional loans work for primary residences, second homes, and investment properties. You'll need 620+ credit, documented income, and 3-25% down depending on use.
Rates run lower than most alternatives because Fannie Mae and Freddie Mac back these loans. That government-sponsored backing translates to better pricing for borrowers who can verify traditional employment.
DSCR loans ignore your job and focus on one number: rental income divided by the mortgage payment. A ratio above 1.0 means the property pays for itself.
These loans serve investors who own multiple properties or have complex tax returns. No employment verification, no income documents, no debt-to-income calculations.
The underwriting split is absolute. Conventional underwrites you as a borrower—your income, assets, debts. DSCR underwrites the property—its rent, expenses, debt coverage.
Conventional caps you at 10 financed properties total. DSCR has no property count limit, making it the only path for serious portfolio investors. Rates vary by borrower profile and market conditions, but expect DSCR to run 0.5-1.5% higher.
Choose conventional if you're buying a primary residence or your first rental property with W-2 income. The lower rate and smaller down payment matter more than underwriting convenience at that stage.
Switch to DSCR once you hit property four or five, or if you're self-employed with write-offs that tank your tax return income. Williams rental properties work for DSCR when you can document market rents that clear the debt service threshold.
No. DSCR is investment property only—you cannot occupy the home. Conventional is your only choice for a primary residence.
DSCR often closes quicker because there's no employment verification. Conventional takes longer when underwriters request additional income documentation.
Yes, both require full appraisals. DSCR appraisals also include a rent schedule to verify the property's income potential.
Yes. Investors often refinance to DSCR after converting a primary residence to a rental property.
Conventional typically accepts 620 credit. DSCR lenders usually require 660-680 minimum for investment properties.