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in Alhambra, CA
Alhambra investors face a clear choice: conventional financing with personal income verification or DSCR loans that qualify on rental income alone. The right option depends on whether you're buying your primary residence or adding to your rental portfolio.
Conventional loans dominate owner-occupied purchases in Alhambra. DSCR loans excel when you're acquiring investment properties without exposing your W-2 income to underwriting scrutiny.
Conventional loans demand full documentation: two years of tax returns, pay stubs, and employment verification. You'll need 620+ credit and typically 5-20% down depending on whether it's your primary home or an investment property.
Rates on conventional loans typically run 0.5-1% lower than DSCR options. Debt-to-income ratios matter heavily—your total monthly debts can't exceed 43-50% of your gross income in most cases.
These loans work best for W-2 earners with clean tax returns buying primary residences or second homes. The documentation burden is high, but the cost of money is the lowest available.
DSCR loans ignore your personal income entirely. Underwriters calculate the property's rental income divided by its total monthly debt—if that ratio hits 1.0 or higher, you're approved regardless of your tax returns.
You'll pay 1-2% higher rates than conventional loans. Minimum credit is usually 660, and most lenders want 20-25% down on investment properties in Alhambra.
Self-employed borrowers and portfolio investors prefer DSCR loans because they don't complicate approvals with write-offs or multiple property debts. The rental income on the subject property is what counts.
The income requirement splits these products cleanly. Conventional loans dissect your personal finances—every bank account, every debt, every income source. DSCR loans look at one number: monthly rent divided by monthly payment.
Rate差距 runs 0.75-1.5% in most scenarios. A $600K Alhambra investment property might cost 6.5% conventional versus 7.75% DSCR. That's $450/month, but DSCR approval happens in days instead of weeks.
Conventional loans cap out at 10 financed properties per borrower. DSCR loans have no such limit—you can finance your 15th rental the same way you financed your first.
Choose conventional if you're buying a primary residence or have clean W-2 income with low debt-to-income ratios. The rate savings over 30 years justify the paperwork hassle for owner-occupied properties.
Pick DSCR when acquiring Alhambra rentals with strong cash flow, especially if you're self-employed or own multiple properties already. Pay the rate premium to avoid income verification and preserve your borrowing capacity.
Many Alhambra investors use both: conventional for their primary home, DSCR for rental acquisitions. Your broker should run numbers on both options before you commit to a purchase contract.
No. DSCR loans require the property to generate rental income and cannot be used for owner-occupied homes.
Most lenders require 1.0 or higher, meaning monthly rent equals or exceeds the mortgage payment plus taxes and insurance.
No. DSCR loans qualify on property cash flow alone without personal income documentation.
You'd refinance into a DSCR loan. Most investors do this when converting primary homes to rentals.
DSCR loans typically close in 14-21 days versus 30-45 for conventional due to lighter documentation requirements.