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in Montebello, CA
Montebello investors face a clear choice: qualify with your W-2 income or let the property pay for itself. Conventional loans work for owner-occupants and investors who can document steady paychecks.
DSCR loans ignore your tax returns entirely. They approve based on rent potential, making them the go-to for self-employed investors or anyone holding multiple properties in Los Angeles County.
Conventional loans offer the lowest rates you'll find—typically 0.5% to 1% below DSCR pricing. You need documented income, 620+ credit, and clean tax returns showing stable earnings.
Investment properties require 15-25% down through conventional financing. Lenders cap you at 10 financed properties total, which limits portfolio growth for active investors.
DSCR loans approve based on one number: monthly rent divided by monthly payment. If that ratio hits 1.0 or higher, you're approved—no pay stubs, no tax returns, no employment verification.
Expect 20-25% down and rates 1-2% above conventional. But there's no property limit, making DSCR the only option once you exceed 10 financed properties.
Income verification separates these loans completely. Conventional lenders pull two years of tax returns and calculate debt-to-income ratios. DSCR lenders order an appraisal, check market rents, and run the coverage ratio.
Portfolio size matters more than most borrowers realize. Hit your 11th financed property and conventional financing disappears—DSCR becomes your only path forward in Montebello.
Choose conventional if you're buying your first few rentals and your tax returns show strong income. The rate savings over 30 years will beat DSCR by tens of thousands.
DSCR makes sense when your income doesn't qualify you—maybe you're self-employed with heavy write-offs, or you're past 10 properties. It also works for out-of-state investors who want fast closings without shipping documents cross-country.
Yes, but you'll pay more in rate and fees. If your income qualifies you conventionally, use that—the savings are significant over 30 years.
Most want 1.0 or higher, meaning rent covers the full payment. Some approve at 0.75 with larger down payments and higher rates.
Yes. Conventional caps cash-out at 75% LTV for investment properties. DSCR lenders go to 80% LTV in most cases.
DSCR loans close in 15-20 days because there's no income verification. Conventional takes 30-40 days with full underwriting.
Absolutely. Many investors refinance into DSCR once they hit the 10-property conventional limit. Rates adjust, but you keep growing the portfolio.