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in Inglewood, CA
Inglewood investors face a choice that determines their buying power. Conventional loans judge you on W-2 income and DTI ratios. DSCR loans only care if the property's rent covers the mortgage.
The split matters in Inglewood's evolving rental market. SoFi Stadium drove new development, but property values vary block by block. Your loan type changes which deals you can pursue and how many doors you can finance.
Conventional loans deliver the best rates if you qualify on traditional metrics. You need 620+ credit and documented income that supports your DTI with the new mortgage payment included.
Investment properties require 15-25% down depending on unit count. Rates run 0.5-0.75% higher than owner-occupied. You're capped at 10 financed properties across your portfolio, which stops most serious investors eventually.
DSCR loans underwrite the property, not you. Lenders calculate monthly rent divided by PITI payment. Hit 1.0 or higher and you qualify regardless of your W-2 income or existing debt load.
Expect 20-25% down and rates 1-2% above conventional. No tax returns, no pay stubs, no employment verification. You can finance unlimited properties as long as each one's rent covers its own payment.
Income verification separates these loans completely. Conventional lenders pull two years of tax returns and calculate DTI with all debts. DSCR lenders order a rent schedule and ignore your employment entirely.
Portfolio size creates the second major split. Hit 10 conventional mortgages and you're done buying with traditional financing. DSCR has no such cap. Rates favor conventional by a full point, but only if your income and DTI support approval.
Choose conventional if you have W-2 income, clean tax returns, and plan to hold fewer than 10 properties. The rate savings compound over 30 years and justify the documentation hassle.
Go DSCR if you're self-employed, show heavy write-offs, or already maxed conventional financing. Inglewood has rental pockets that hit 1.2+ DSCR easily. Pay the rate premium to keep scaling your portfolio without income limits blocking you.
Most DSCR lenders allow appraisal-based rent projections if the property is vacant. You'll need 1.0+ DSCR based on that projected figure to qualify.
Yes. Conventional wants 2-6 months PITI in reserves per property. DSCR lenders typically require 6-12 months depending on credit score and DSCR ratio.
DSCR loans often close quicker because there's no employment or income verification. Expect 21-30 days versus 30-45 for conventional with full documentation.
Yes. Many investors refi into DSCR after hitting the 10-property conventional limit. You'll pay a higher rate but unlock capacity to keep buying.
Conventional investment loans require 620 minimum. DSCR lenders want 660-680 depending on down payment and DSCR ratio. Higher credit improves rates on both.