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in La Canada Flintridge, CA
La Cañada Flintridge sits in the foothills with strong schools and stable property values. That attracts both primary buyers using conventional loans and investors who need DSCR financing.
These loan types serve different purposes entirely. Conventional works for owner-occupants with W-2 income. DSCR qualifies rental investors based on property cash flow, not personal tax returns.
Conventional loans require documented income, employment verification, and clean credit. You'll need at least 3% down for primary homes, though 20% avoids mortgage insurance.
Rates are competitive because you're backed by Fannie Mae or Freddie Mac. Credit scores above 740 get the best pricing. Debt-to-income ratios cap around 50% for most borrowers.
This is the default choice for buying a home you'll live in. Conforming limits in Los Angeles County go up to $1,249,125 for 2026, which covers most La Cañada Flintridge properties.
DSCR loans skip personal income verification completely. Underwriters look at one number: monthly rent divided by monthly debt service on the property.
You need a DSCR ratio above 1.0, meaning rent covers the mortgage payment. Most lenders want 1.1 or higher for approval. Credit minimums run 680-700 depending on the lender.
Expect 20-25% down and rates about 1-2% higher than conventional. The tradeoff is speed and simplicity for investors with complex tax returns or multiple properties.
Conventional qualifies you based on your income. DSCR qualifies the property based on its rent. That's the core split between these products.
Conventional offers better rates and terms but requires full documentation. DSCR costs more but works for investors who don't want to show tax returns or have maxed out their debt ratios.
You can't use DSCR for a primary residence. It's investment properties only. Conventional works for primary, second homes, and investment properties if you qualify traditionally.
Buying a home to live in? Conventional is your only real option here and offers better pricing anyway. DSCR doesn't work for owner-occupants.
Buying a rental property with strong cash flow? DSCR makes sense if you're self-employed, write off a lot of income, or already own multiple rentals. You'll pay more but close faster without tax return drama.
Some investors use conventional for their first rental property to save on rate. Once you own 4-10 financed properties, DSCR becomes the easier path even with higher costs.
No. DSCR loans are for investment properties only. You must use conventional or another owner-occupant product for a primary residence.
Conventional loans offer rates 1-2% lower than DSCR. Rates vary by borrower profile and market conditions.
No. DSCR loans don't require personal tax returns or income verification. Approval is based on rental income from the property.
Conventional allows 3% down for primary homes, 15% for investment properties. DSCR typically requires 20-25% down.
Most DSCR lenders require 680-700 minimum. Conventional loans accept scores as low as 620 with higher rates.