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in Bell, CA
Bell sits in a unique position where conventional single-family mortgages compete with investor-focused DSCR loans. The choice depends on who's living in the property.
Conventional loans dominate primary residence purchases with lower rates and standard underwriting. DSCR loans serve investors who can't document W-2 income or don't want to.
Conventional loans require proof of income, 620+ credit, and DTI under 50%. You'll get the best rates available if you're living in the home.
Down payments start at 3% for primary residences. Investment properties need 15-25% down and carry higher rates than owner-occupied deals.
These loans top out at $766,550 for conforming limits in Los Angeles County. Above that, you're in jumbo territory with stricter requirements.
DSCR loans skip personal income verification entirely. Lenders qualify you on the property's rental income divided by the mortgage payment.
You need a DSCR above 1.0, meaning rent covers the full mortgage. Most lenders want 1.15 or higher for competitive pricing.
Expect 20-25% down minimum and rates 1-2% higher than conventional. Credit requirements start around 640 but vary by lender.
The core split: conventional loans look at your income, DSCR loans look at the property's income. That changes everything about who qualifies.
Conventional offers lower rates and less down for primary residences. DSCR trades higher costs for flexibility if you're self-employed or own multiple rentals.
Conventional loans have strict occupancy rules and DTI caps. DSCR loans don't care about your tax returns but charge for that convenience.
Use conventional if you're buying a primary residence or can document steady W-2 income. You'll pay less and have more loan options.
DSCR works when you're buying a rental, already own multiple properties, or run a business that complicates tax returns. The rental income qualifies you.
No. DSCR loans require the property to be rented. You can't live in a DSCR-financed home as your primary residence.
Conventional loans offer lower rates even on rentals. DSCR rates run 1-2% higher but don't require personal income verification.
Conventional covers 1-4 units with owner-occupancy on 2-4 units. DSCR handles 1-4 unit rentals plus some commercial property types.
740+ gets top-tier conventional pricing. DSCR loans tier pricing at 680, 700, 720, and 740 with significant rate jumps between levels.
Yes, if the property is now rented and meets DSCR requirements. Most investors do this when converting a primary home to a rental.