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in Artesia, CA
Conventional loans work for primary residences and have strict income verification. DSCR loans let you qualify based on rental income alone.
Most Artesia buyers use conventional for their home purchase. Investors buying multi-family properties or single-family rentals typically need DSCR.
The biggest split: conventional lenders verify your W-2 or tax returns. DSCR lenders only care if the rent covers the mortgage payment.
Conventional loans require two years of tax returns or W-2s. You need a 620+ credit score and debt-to-income under 50%.
Down payment starts at 3% for first-time buyers, 5% for repeat buyers. Investment properties require 15-25% down.
Rates are typically 0.5-1% lower than DSCR because you're qualifying with full income documentation. Lenders see less risk.
DSCR loans qualify you based on property cash flow. Lenders calculate monthly rent divided by monthly payment (PITI).
You need a DSCR ratio above 1.0 for most deals. A 1.25 ratio gets better pricing—rent needs to exceed payment by 25%.
Minimum 20-25% down payment on investment properties. Credit score floor is usually 660, sometimes 620 with strong cash flow.
No tax returns or pay stubs required. Perfect if you're self-employed, have multiple income sources, or retired with rental income.
Income verification is the main split. Conventional lenders check every income source and liability. DSCR lenders run an appraisal and rent survey.
Rates vary by borrower profile and market conditions, but DSCR runs 1-2% higher than conventional. You're paying for underwriting flexibility.
Conventional allows 3% down for owner-occupied purchases in Artesia. DSCR requires 20-25% minimum because it's investment-only financing.
Debt-to-income matters for conventional—your personal debts affect approval. DSCR ignores your car payment, credit cards, and other mortgages.
Use conventional if you're buying a primary residence in Artesia or have clean W-2 income. Lower rates and smaller down payments make it the default choice.
Choose DSCR if you're buying a rental property and want faster approval without tax return hassles. Self-employed investors save months of paperwork.
Conventional won't approve you for investment properties with weak personal income. DSCR doesn't care about your income—only the property's rent roll.
Most brokers push conventional first because rates are lower. But DSCR opens deals that conventional underwriting would decline outright.
No. DSCR loans are investment property only. You need conventional, FHA, or another owner-occupied loan for a primary residence.
Conventional requires 620 minimum. DSCR usually needs 660, though some lenders go to 620 with higher rates and strong cash flow.
DSCR rates typically run 1-2% higher. Rates vary by borrower profile and market conditions—exact pricing depends on credit, down payment, and DSCR ratio.
Conventional requires PMI under 20% down. DSCR loans don't have PMI but charge higher base rates to offset risk.
DSCR often closes faster because there's no income verification. Conventional takes longer if your tax returns need multiple review cycles.