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in Clovis, CA
Clovis investors face a clear choice: use your W-2 income to qualify for a conventional loan, or let the property's rent qualify you with a DSCR loan. Most owner-occupants pick conventional. Most portfolio investors pick DSCR.
The difference comes down to how lenders measure your ability to repay. Conventional loans scrutinize your debt-to-income ratio. DSCR loans only care if the rent covers the mortgage payment.
Conventional loans require W-2s, tax returns, and a clean DTI under 50%. You get the lowest rates and can buy in Clovis with as little as 3% down if you live there. Investment properties need 15-25% down.
These loans work well for first-time buyers and anyone with steady employment. Rates as of February 2026 hover near four-year lows around 6%. You'll pay PMI if you put down less than 20%.
DSCR loans skip your tax returns entirely. The lender divides monthly rent by the mortgage payment to get your ratio. You need 1.0 or higher to qualify, meaning rent must equal or exceed the PITIA payment.
Expect 20-25% down and rates 1-2 points above conventional. No income docs, no DTI limits, no explanation of how you earned the down payment. Perfect for self-employed investors or anyone buying multiple rentals per year.
Local decision guide
Use this comparison to weigh Conventional Loans and DSCR Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Clovis.
Clovis investors face a clear choice: use your W-2 income to qualify for a conventional loan, or let the property's rent qualify you with a DSCR loan. Most owner-occupants pick conventional. Most portfolio investors pick DSCR.
The difference comes down to how lenders measure your ability to repay. Conventional loans scrutinize your debt-to-income ratio. DSCR loans only care if the rent covers the mortgage payment.
Conventional loans require W-2s, tax returns, and a clean DTI under 50%. You get the lowest rates and can buy in Clovis with as little as 3% down if you live there. Investment properties need 15-25% down.
Rate spread matters in Clovis. A $400K rental with 20% down costs about $240 more per month on a DSCR loan versus conventional. That's $2,880 annually, which eats into cash flow but may be worth it if you can't qualify conventionally.
Underwriting timelines differ too. Conventional takes 30-40 days with full income review. DSCR closes in 20-25 days because there's less paperwork. If you're flipping and renting quickly, speed wins.
Use conventional if you're buying your first rental and still work a W-2. The rate savings compound over 30 years. Use DSCR if you own multiple properties, file complex returns, or can't document steady income.
In Clovis, most single-family rentals cash flow at a 1.1 DSCR or higher with 25% down. Run the numbers before choosing. A lower rate on conventional might not matter if your DTI is already maxed out from other debts.
No. DSCR loans are for investment properties only. If you're living there, you need conventional, FHA, or another owner-occupied product.
Yes, typically 6-12 months of PITIA in the bank after closing. Conventional rentals need similar reserves but the amount varies by property count.
Conventional starts at 620 for rentals. DSCR lenders want 640 minimum, 680+ for best pricing. Higher scores lower your rate on both products.
You're capped at 10 financed properties total. DSCR has no limit, which is why portfolio investors switch once they hit the conventional ceiling.
They order an appraisal with rent schedule. Monthly rent divided by PITIA equals your ratio. 1.0 is breakeven; 1.25 is ideal for strong pricing.