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in Bradbury, CA
Bradbury attracts investors looking for estate properties and stable appreciation. Choosing between conventional financing and DSCR loans depends on whether you're buying a primary residence or pure investment.
Conventional loans work great for owner-occupied properties and second homes. DSCR loans let you qualify based on rental income alone, perfect for investors who don't want to show W-2 income.
Conventional loans require full income documentation and strong credit. You'll typically need 620+ credit for approval, with better rates at 740+.
Down payments start at 3% for owner-occupied homes. Investment properties need 15-25% down depending on your credit profile and reserves.
Rates are highly competitive because these loans meet Fannie Mae and Freddie Mac standards. You get the tightest pricing in the mortgage market when you qualify.
DSCR loans skip personal income verification entirely. Your loan approval depends on the property's rental income covering the mortgage payment.
Lenders want a DSCR of 1.0 or higher, meaning rent equals or exceeds PITIA. Some programs go down to 0.75 DSCR if you have strong credit and reserves.
You'll need 20-25% down and credit scores typically start at 660. Rates run 0.5-1.5% higher than conventional because you're not showing tax returns or paystubs.
The income verification split is the main divider. Conventional requires two years of tax returns and employment verification. DSCR uses a rent schedule or appraisal to determine property income.
Down payment requirements favor conventional for owner-occupied buyers. Investment properties need similar down payments on both programs, but DSCR offers more flexibility for borrowers with complex income.
Rate differences matter over time. A 0.75% rate premium on a $1 million loan costs roughly $5,500 more per year. Run the math on whether avoiding income docs justifies that spread.
Choose conventional if you're buying a primary residence or have clean W-2 income. The rate savings and lower down payment options make it the obvious pick for traditional borrowers.
Go DSCR if you're a real estate investor with multiple properties, self-employed with complex returns, or simply want to scale without hitting DTI limits. Your rental income does the heavy lifting.
Bradbury's high property values mean rate differences compound quickly. A borrower with straightforward income should take the conventional route. Investors building portfolios often find DSCR worth the premium to avoid income qualification hurdles.
No, DSCR loans are investment property only. You need conventional financing for a primary home or second home purchase.
Timelines are similar at 25-35 days. DSCR can be slightly faster since you skip income verification, but appraisal delays affect both equally.
Yes. Conventional allows cash-out on primary homes and investment properties. DSCR offers cash-out refi for investment properties based on rental income coverage.
You can refinance to conventional if you move in and make it your primary residence. After 12 months occupancy, you qualify for primary residence conventional rates.
Conventional loans never have prepayment penalties. DSCR loans sometimes carry prepayment penalties for 1-3 years depending on the lender and rate structure.