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in Martinez, CA
Martinez sits in Contra Costa County, where the median household income is $125,727 and the conforming loan limit reaches $1,249,125 for 2026.
Both programs serve different buyer profiles. Conventional loans dominate owner-occupied purchases. DSCR loans open the door for investors and business owners whose W-2 income alone doesn't reflect their true earning capacity.
Conventional loans are the backbone of homebuying in Martinez. They require a minimum credit score around 620, though lenders typically prefer 680 or higher. Down payments start at 3% for qualified buyers, though 5% to 20% is more common.
The appeal is simplicity. Lenders underwrite based on W-2 income, tax returns, and credit history—the standard playbook. Closing costs run 2% to 5% of the loan amount.
DSCR loans (Debt Service Coverage Ratio) qualify borrowers based on the property's income potential, not personal W-2 income. A DSCR of 1.25 means the rental income covers the mortgage payment plus taxes, insurance, and HOA by 25%.
Credit requirements are typically 660 or higher. Down payments range from 15% to 25%. DSCR loans don't carry PMI; instead, the higher down payment and stricter income verification protect the lender.
The biggest split is income qualification. Conventional lenders want your W-2 and tax returns. DSCR lenders want the property's rental income or your business cash flow.
Down payment and insurance differ too. Conventional buyers can put down as little as 3% and carry PMI until 80% LTV. DSCR buyers typically put down 15% to 25% and skip PMI entirely.
Pick conventional if you're buying a home to live in and your income comes from a W-2 job or salaried position. You have stable employment history, a credit score above 680, and enough cash for a down payment of 3% to 10%.
Pick DSCR if you're an investor buying a rental property or a self-employed business owner whose tax return doesn't reflect your actual income. You have a credit score of 660 or higher and can put down 15% to 25%.
DSCR loans are designed for investment properties and require the lender to verify rental income. If you're buying to occupy the home yourself, conventional is the right choice. DSCR's income qualification model doesn't fit owner-occupied purchases.
Yes — 20% down eliminates PMI on a conventional loan. Below 20%, PMI applies and continues until you reach 80% LTV. With 3% to 10% down, PMI typically adds $100 to $300 per month depending on the loan amount and credit score.
Conventional requires 620 minimum, though lenders prefer 680 or higher. DSCR typically requires 660 or higher. Better credit scores on either program lower your interest rate and reduce closing costs.
Conventional typically closes in 30 to 45 days. DSCR takes 45 to 60 days because the lender must verify rental income or business cash flow. If you're buying an investment property with a lease in place, DSCR moves faster.
Yes — DSCR is ideal for self-employed borrowers. The lender qualifies you on business cash flow and rental income, not your personal tax return.