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in Monterey Park, CA
Monterey Park investors face a clear choice: qualify on your W-2 income or qualify on the rental cash flow itself. Conventional loans reward strong personal finances with lower rates and flexible property types.
DSCR loans ignore your tax returns entirely and approve based solely on rental income potential. For Monterey Park's mix of single-family homes and multi-unit properties, your borrower profile dictates which path works best.
Conventional loans require documented income, 620+ credit, and typically 15-25% down for investment properties. Rates run 0.5-1% lower than DSCR because you're proving personal repayment ability through pay stubs and tax returns.
You can buy up to 10 financed properties on conventional financing. Lenders verify employment, debt-to-income ratios, and income stability, making this the default choice for W-2 earners with clean tax returns.
DSCR loans skip tax returns, pay stubs, and employment verification completely. Approval hinges on one number: monthly rental income divided by monthly mortgage payment must hit 1.0 or higher.
Expect 20-25% down and rates 1-2% above conventional. You can close in an LLC, carry unlimited financed properties, and avoid the income documentation headaches that kill deals for self-employed or high-write-off borrowers.
The rate gap matters. Conventional saves you $150-250 monthly per $400k borrowed versus DSCR, but only if you can document steady W-2 income and keep debt ratios under 45%. DSCR costs more but approves borrowers conventional lenders reject outright.
Conventional caps you at 10 properties and requires two years of landlord experience after property four. DSCR has no property count limit and no seasoning requirements, making it the tool for portfolio scaling or first-time investors with strong rental markets.
Choose conventional if you have W-2 income, clean tax returns, and want the lowest rate. It works best for Monterey Park buyers with stable employment who plan to hold 1-4 investment properties long-term.
Pick DSCR if you're self-employed, write off heavy business expenses, or already own multiple financed properties. The rate premium buys you approval flexibility that conventional underwriting simply can't offer.
Yes. DSCR loans have no experience requirements and approve first-time investors based purely on rental income potential.
Expect $225-375 more per month due to higher rates. The premium buys you approval without tax returns or income verification.
Conventional requires 620 minimum. DSCR lenders start at 660 but some accept 620 with larger down payments.
Often yes. Skipping income verification cuts 1-2 weeks from underwriting timelines on complex borrower profiles.
Yes. Conventional covers 2-4 units as investment properties. DSCR handles 1-4 units and some 5-8 unit buildings.