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in Manhattan Beach, CA
Manhattan Beach investors face a choice: qualify on your W-2 income or the property's rental performance. That's the core split between conventional and DSCR financing.
Conventional loans reward strong personal financials with lower rates. DSCR loans ignore your tax returns entirely and focus on whether rent covers the mortgage.
Conventional loans offer the lowest rates available for Manhattan Beach properties. You'll need W-2s, tax returns, and a 620+ credit score to qualify.
These loans work best for buyers with clean income documentation. Lenders cap you at 10 financed properties, and investment properties require 15-25% down depending on your reserves.
The big advantage: rates typically run 0.5-1% lower than DSCR options. That difference saves thousands monthly on a $2M Manhattan Beach rental.
DSCR loans qualify you on rent alone. No tax returns, no W-2s, no explanation of write-offs that tank your reported income.
Lenders want a DSCR of 1.0 or higher—meaning monthly rent covers the full mortgage payment. Manhattan Beach rents make this achievable on most properties, but rates run higher than conventional.
You can finance unlimited properties with DSCR. Expect 20-25% down and rates roughly 1-1.5% above conventional pricing. Rates vary by borrower profile and market conditions.
Documentation separates these loans. Conventional demands two years of tax returns and proof your income supports the debt. DSCR ignores your income entirely.
Rates favor conventional by a clear margin. You'll pay more monthly on DSCR, but you avoid the income documentation that disqualifies most active investors.
Property limits matter for portfolio builders. Conventional caps at 10 financed properties. DSCR has no such limit—scale without hitting financing walls.
Choose conventional if you're buying your first 1-3 rentals and show strong W-2 income. The rate savings compound over 30 years and justify the paperwork.
Go DSCR if you write off significant income, own multiple properties, or can't document traditional employment. Manhattan Beach rents typically support 1.0+ DSCR ratios.
Self-employed borrowers with heavy write-offs save time with DSCR. You skip the tax return gymnastics and qualify on the property's performance instead.
No. DSCR loans only work for investment properties. You need rental income to qualify, so these don't apply to homes you'll live in.
Conventional rates run 0.5-1.5% lower than DSCR. You pay for the flexibility of no income verification with higher DSCR pricing.
Close but not identical. Conventional investment properties need 15-25% down. DSCR typically requires 20-25% minimum.
Conventional requires 620 minimum for investment properties. DSCR lenders typically want 680+, though some go as low as 660.
Yes. Many investors refinance to DSCR when adding properties pushes them past conventional limits or when income documentation becomes difficult.