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in Huntington Park, CA
Huntington Park's rental market attracts both traditional homebuyers and real estate investors. Conventional loans work for owner-occupants and investors who qualify through W-2 income.
DSCR loans skip personal income verification entirely. They qualify you based on what the property generates in rent, making them the go-to for investors with complex tax returns.
Conventional loans deliver the lowest rates and best terms if you meet standard qualification boxes. You need W-2 income, tax returns, and a debt-to-income ratio under 50%.
Investment property conventional loans require 15-25% down depending on unit count. Rates run 0.5-0.75% higher than owner-occupied rates, with tighter reserve requirements.
DSCR loans ignore your personal income completely. The lender divides monthly rent by the mortgage payment to get your debt service coverage ratio.
Most lenders want a DSCR of 1.0 or higher, meaning rent covers the full payment. You can go lower with higher rates or bigger down payments, typically starting at 20-25% down.
Conventional loans beat DSCR on rate by 1-2% for most borrowers. But that rate advantage disappears if your tax write-offs tank your qualifying income.
DSCR lets you finance unlimited properties without hitting Fannie Mae's 10-financed-property cap. Rates vary by borrower profile and market conditions, but expect to pay more for the income flexibility.
Pick conventional if you're a W-2 earner with clean tax returns and want the lowest rate. It's the clear winner for buyers with straightforward income and fewer than 10 financed properties.
Choose DSCR if you're self-employed, write off most income, or already own multiple rentals. The higher rate is worth it when conventional loans won't approve you at all.
No, DSCR loans only work for investment properties. If you're buying a primary home, you need conventional, FHA, or another owner-occupied program.
DSCR often closes quicker since there's no income verification or employment check. Conventional requires full underwriting of your personal finances.
Yes, but conventional caps cash-out at 75% LTV for investment properties. DSCR lenders vary, typically allowing 70-80% LTV on cash-out deals.
Absolutely. Many investors start with DSCR, then refinance to conventional once the property stabilizes and their income supports qualification.
Conventional loans through Fannie Mae have tighter property standards. DSCR lenders are often more flexible with older or unique properties.