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in Lynwood, CA
Lynwood sits in a rental-heavy market where investors compete with owner-occupants. Conventional loans serve primary homebuyers who qualify with W-2 income. DSCR loans fund investors who buy based on rental cash flow, not paystubs.
Most Lynwood buyers use conventional financing for lower rates and standard terms. Investors who own multiple properties or lack traditional income documents choose DSCR to skip personal income verification entirely.
Conventional loans require 620+ credit and documented income from tax returns or paystubs. You'll need 3-5% down for a primary home, 15-25% for investment properties. Rates stay competitive because Fannie Mae and Freddie Mac back these mortgages.
Debt-to-income ratio caps at 50% for most borrowers. Lenders verify every dollar you earn and owe. Appraisals must meet strict property condition standards—no major deferred maintenance allowed.
DSCR loans approve you based on rental income divided by the mortgage payment. Lenders want a ratio above 1.0, meaning rent covers the full PITIA payment. Your personal income never enters the equation—no tax returns, no pay stubs, no employment verification.
Expect 20-25% down and rates 1-2% higher than conventional. Credit scores start at 660 for most programs. You can close in an LLC and buy unlimited properties without hitting Fannie Mae's 10-financed-property cap.
Conventional loans check your job, income, and debts. DSCR loans ignore all that and look only at whether rent exceeds the mortgage payment. This matters in Lynwood where rental demand supports investment purchases but buyers may lack traditional income proof.
Rate difference runs 1-2% in DSCR's favor—you pay for the flexibility. Conventional hits lower rates but caps investment financing at 10 properties. DSCR has no property limit and allows LLC ownership from day one.
Choose conventional if you're buying a primary home or first investment property with steady W-2 income. The lower rate saves thousands over 30 years. You'll qualify faster with clean tax returns and standard documentation.
Pick DSCR if you're self-employed, own multiple rentals, or can't document traditional income. Lynwood's rental market supports strong cash flow—investors use DSCR to scale beyond conventional loan limits without hitting Fannie Mae's 10-property wall.
No. DSCR loans fund investment properties only. Primary homes require conventional, FHA, or VA financing with personal income verification.
Most want 1.0 or higher—monthly rent equals or exceeds the mortgage payment. Some lenders approve 0.75 ratios with larger down payments and higher rates.
Yes, but you'll need 15-25% down and hit a 10-property limit. DSCR removes that cap and approves based on rental income alone.
DSCR often closes quicker—no employment verification or tax return analysis. Conventional takes longer due to income documentation and appraisal condition requirements.
Yes. Investors refinance to pull cash out or remove personal income from future underwriting. Expect higher rates but gain portfolio flexibility.