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in Calexico, CA
Calexico sits on the US-Mexico border with a rental market driven by cross-border workers and investors. That mix makes loan choice critical.
Conventional loans fit owner-occupants with strong W-2 income. DSCR loans are built for investors who want the property to qualify itself.
Conventional loans are not government-backed. Lenders price them based on your credit score, income, and down payment.
You'll need at least a 620 credit score. Put down 20% and you skip private mortgage insurance entirely.
These loans work best for buyers moving into a primary residence or purchasing a second home with clean financials.
DSCR stands for Debt Service Coverage Ratio. Lenders look at the rental income versus the mortgage payment — not your tax returns.
A DSCR of 1.0 means rent covers the mortgage exactly. Most lenders want 1.1 or higher to approve the loan.
This is a non-QM product. Rates run higher than conventional, but investors with multiple properties or complex income love it.
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 Calexico.
Calexico sits on the US-Mexico border with a rental market driven by cross-border workers and investors. That mix makes loan choice critical.
Conventional loans fit owner-occupants with strong W-2 income. DSCR loans are built for investors who want the property to qualify itself.
Conventional loans are not government-backed. Lenders price them based on your credit score, income, and down payment.
The biggest split is how you qualify. Conventional uses your personal income. DSCR uses the property's rent-to-mortgage ratio.
HousingWire flagged the 30-year fixed hitting 6.57% recently — that gap between conventional and DSCR rates matters more when base rates are elevated. Rates vary by borrower profile and market conditions.
Down payment minimums differ too. Conventional can go as low as 3% for primary homes. DSCR typically requires 20-25% down on investment properties.
If you're buying a home to live in near the border crossing, conventional is almost always the right call. Better rates, lower down payment.
If you're targeting Calexico rentals — apartments, casitas, multi-unit buildings — DSCR lets you scale without your W-2 becoming the bottleneck.
Self-employed investors with messy tax returns especially benefit from DSCR. Your accountant's write-offs won't kill the deal.
No. DSCR is investment property only. For a primary residence, conventional or government-backed loans are your options.
Most DSCR lenders require a 680 minimum. Some go to 660, but your rate improves significantly above 720.
Yes, up to 4 units if you occupy one. Beyond that, DSCR or commercial financing is the path forward.
Divide the monthly rent by the total mortgage payment. A $1,200 rent on a $1,000 payment equals a 1.2 DSCR.
Conventional loans typically close in 21-30 days with clean files. DSCR can match that pace since there's no income doc review.
Yes. Many investors use conventional for their primary home and DSCR for rental properties. They don't conflict.