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in Orland, CA
Orland buyers face a choice: qualify on your W-2 income or the property's rental potential. Conventional loans judge you, DSCR loans judge the deal.
Most owner-occupants go conventional. Investors building rental portfolios in Glenn County often need DSCR. Your borrower type dictates your path.
Conventional loans check your W-2s, tax returns, and debt-to-income ratio. You need 620+ credit for approval, 740+ for best rates.
Put down 3% as an owner-occupant, 15% as an investor. Rates beat most government programs. PMI drops off at 20% equity automatically.
These loans cap at conforming limits—$806,500 in most of California for 2025. Approval hinges on your personal financial profile, not property performance.
DSCR loans ignore your tax returns entirely. Underwriters calculate monthly rent divided by monthly payment—that's your coverage ratio.
You need 1.0 DSCR minimum at most lenders, 1.25 for strongest terms. Put down 20-25% minimum. Rates run 1-2% higher than conventional.
No income verification means no tax return headaches. Perfect for self-employed investors or anyone with complex income. Property must cash flow or break even.
Conventional loans require full income documentation—paystubs, W-2s, two years of tax returns. DSCR lenders pull a rent schedule or appraisal instead.
Rate difference matters on Orland properties. A $350,000 rental at 7% conventional costs $2,329/month. Same loan at 8.5% DSCR costs $2,692—$363 more monthly.
Conventional caps investor properties at 10 financed at once. DSCR has no portfolio limit. You can finance property 11, 15, 20 without hitting a wall.
Buying your Orland primary residence? Conventional wins every time—lower rates, smaller down payment, easier approval for W-2 earners.
Buying a rental with strong 1099 income and clean taxes? Still conventional. You'll save thousands in interest over the loan term.
DSCR makes sense when personal income complicates approval—multiple LLCs, high write-offs, or portfolios beyond 10 properties. You pay for convenience and scale.
No. DSCR loans only work for investment properties that generate rental income. Primary residences need conventional or government-backed loans.
Both take 21-30 days typically. DSCR can be quicker if your income documentation is messy, since lenders skip tax return review entirely.
Yes, expect 6-12 months of payment reserves depending on credit and DSCR ratio. Conventional requires less—usually 2-6 months for investors.
Absolutely. Many investors refinance once they hit 10 conventional loans or want to pull equity without income verification. Rates will increase though.
Conventional offers better rates and lower down payments. DSCR offers portfolio scalability and no income documentation. Your situation determines better.