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in La Habra Heights, CA
La Habra Heights sits in a quiet pocket of LA County where investors often target single-family rentals. The loan you pick depends on whether you're buying a primary home or an income property.
Conventional loans work for owner-occupants with W-2 income. DSCR loans serve real estate investors who qualify on rental cash flow instead of tax returns.
Conventional loans require proof of personal income—pay stubs, W-2s, tax returns. You need 620+ credit for most programs, though 740+ unlocks the best rates.
Down payments start at 3% for first-time buyers and 5% for repeat buyers on primary homes. Investment properties need 15-25% down depending on the number of units.
Debt-to-income ratio caps at 50% in most cases. Lenders count your existing debts plus the new mortgage payment against your gross monthly income.
DSCR loans skip personal income verification entirely. The underwriter looks at the property's rental income divided by the monthly mortgage payment.
You need a DSCR of 1.0 or higher—meaning rent covers the full mortgage. Some lenders accept 0.75 DSCR if you compensate with higher down payment or reserves.
Minimum 20% down, often 25% for better pricing. Credit requirements start around 660, though 700+ opens more lender options and lower rates.
The approval process diverges completely. Conventional underwriters scrutinize your job history and personal finances. DSCR lenders order a rent schedule and calculate whether the property pays for itself.
Rates vary by borrower profile and market conditions, but DSCR loans typically price 0.5-1.5% higher than conventional. You're paying for the flexibility to skip income docs.
Conventional loans offer lower rates and better terms for owner-occupants. DSCR loans make sense when your tax returns show write-offs that hurt DTI or you own multiple rental properties.
Choose conventional if you're buying a primary residence or have clean W-2 income. The lower rates and smaller down payments beat DSCR pricing every time.
Pick DSCR if you're an investor with complicated tax returns, multiple properties, or irregular income. You'll pay more upfront and monthly, but approval hinges on the deal—not your 1040.
La Habra Heights investors often use DSCR for single-family rentals when conventional DTI won't stretch. SRK CAPITAL shops both options across 200+ lenders to find your best fit.
No. DSCR loans are for investment properties only. You must use conventional, FHA, or another owner-occupant program for a primary home.
Conventional loans price 0.5-1.5% lower than DSCR in most cases. Rates vary by borrower profile and market conditions.
Conventional typically requires 2-6 months reserves. DSCR lenders often ask for 6-12 months depending on credit and DSCR ratio.
You'd refinance into a DSCR loan once the property becomes a rental. The new loan would be based on rental income, not your W-2.
DSCR often moves quicker because there's no employment verification or tax return analysis. Conventional can drag if underwriters request more income docs.