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in Azusa, CA
Most Azusa buyers start with conventional financing. But if you're buying an investment property, DSCR loans let you qualify on rental income instead of your W-2.
Conventional loans work great for owner-occupants and some investors. DSCR loans serve real estate investors who want to skip the tax return hassle.
Conventional loans require proof of income through W-2s and tax returns. You need solid credit—typically 620 minimum, but 740+ gets you better rates.
Down payment starts at 3% for primary homes. Investment properties need 15-25% down. You'll face debt-to-income limits, usually maxing at 50%.
Rates on conventional loans beat most alternatives. That's the payoff for jumping through the documentation hoops.
DSCR loans skip your personal income entirely. The property has to cover its own mortgage—typically needing rent that's 1.0-1.25x the payment.
You need 20-25% down minimum. Credit requirements sit around 640-680. No tax returns, no W-2s, no DTI calculations.
Rates run 0.5-1.5% higher than conventional. You pay for the simpler documentation and investor-friendly structure.
Qualification flips completely. Conventional loans care about your income and debts. DSCR loans only care if the property cashflows.
Conventional wins on rate. DSCR wins on simplicity for investors with complex tax returns or multiple properties. Down payment requirements favor conventional for primary homes, but level out for investment properties.
Buying a primary home in Azusa? Conventional is your path. Lower rates and smaller down payments make it the obvious choice for owner-occupants.
Buying an investment property? Run the math. If you have clean tax returns and low DTI, conventional saves you money on rate. If you're self-employed, own multiple rentals, or write off heavy expenses, DSCR removes the income documentation headache.
No. DSCR loans only work for investment properties. You need conventional, FHA, or another owner-occupant loan for a primary home.
Conventional loans offer lower rates. DSCR rates typically run 0.5-1.5% higher because they skip personal income verification.
Nearly. Conventional needs 15-25% down for investments. DSCR requires 20-25%. The gap is small for rental properties.
Not for full documentation. Conventional loans require tax returns. That's where DSCR loans shine—no tax returns needed.
DSCR can move quicker. You skip the income documentation gathering. But underwriting speed depends more on your specific broker than loan type.