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in Parlier, CA
Parlier investors face a clear choice: prove income the traditional way or let the property qualify itself. Conventional loans demand W-2s and tax returns. DSCR loans skip that entirely and use rental income instead.
Most owner-occupants lean conventional for better rates. Investors with multiple properties or complex tax returns choose DSCR to avoid income documentation hassles.
Conventional loans offer the lowest rates in Parlier if you can document stable income. You'll need two years of W-2s or tax returns, credit above 620, and debt ratios under 50%. Rates run 1-2% lower than investor alternatives.
These loans work for primary homes, second homes, and investment properties. Maximum four financed properties in most cases. Down payment starts at 3% for owner-occupants, 15-25% for rentals depending on unit count.
DSCR loans qualify you on the property's rental income, not your W-2. Lenders calculate the rent divided by the mortgage payment. Ratios above 1.0 mean the property pays for itself. Ratios below 1.0 still work with larger down payments.
No income verification. No tax returns. No employment letters. Perfect for self-employed investors or those with multiple rental properties in Parlier. Rates typically run 1.5-2.5% higher than conventional, offset by zero income documentation.
Income verification separates these programs completely. Conventional lenders analyze every pay stub and bank statement. DSCR lenders order an appraisal with rent schedule and calculate coverage. The property either cash flows or it doesn't.
Rates favor conventional by a wide margin if you qualify. DSCR pricing reflects the underwriting risk of skipping income docs. Property count matters too—conventional caps at four financed properties while DSCR has no limit. Credit minimums run similar at 620-640.
Choose conventional if you have clean W-2 income and want the lowest rate. Choose DSCR if your tax returns show heavy write-offs that kill your qualifying income, or you already own multiple rentals and hit the conventional property limit.
Parlier investors buying their first rental usually go conventional for pricing. Seasoned investors with five or more properties default to DSCR because conventional isn't an option. Self-employed buyers often prefer DSCR to avoid explaining every business deposit.
No. DSCR loans fund investment properties only. You must use conventional, FHA, or another owner-occupant program for a primary home.
Ratios above 1.0 get standard pricing. Ratios from 0.75-1.0 work with larger down payments and rate adjustments based on coverage.
Most carry prepayment penalties for 1-5 years. Conventional loans rarely include penalties. Confirm terms before locking your rate.
DSCR has no property limit. Conventional caps at four financed properties for most borrowers, blocking portfolio growth beyond that.
Yes, if the property is now a rental. Investors refinance to DSCR when adding properties and needing to preserve conventional capacity.