Question 1

Can I use both loan types at the same time?

Accepted Answer

Yes. Many investors carry 8 conventional loans and 5 DSCR loans. The programs don't interfere with each other. Just remember conventional caps at 10 total financed properties.

Question 2

What DSCR ratio do Martinez properties typically hit?

Accepted Answer

Most Martinez rentals run 1.1-1.3 DSCR with 25% down. Single-family homes in Alhambra Valley and downtown condos both pencil if you buy right. Rates vary by borrower profile and market conditions.

Question 3

Do DSCR loans require reserves?

Accepted Answer

Yes. Expect 6-12 months PITI in reserves per property. Conventional asks for similar reserves on investment properties. Budget for that liquidity either way.

Question 4

Which loan closes faster in Martinez?

Accepted Answer

DSCR often closes in 18-21 days because there's no employment verification or tax return review. Conventional takes 25-35 days with full income underwriting.

Question 5

Can I refinance from conventional to DSCR later?

Accepted Answer

Yes. Investors refinance to DSCR when they want to free up DTI for more purchases. You're trading a lower rate for buying power. Common move once you hit 7-8 properties.

Conventional vs DSCR Loans in Martinez: Which Works for Your Investment Strategy?