Loading
in Rolling Hills Estates, CA
Rolling Hills Estates attracts two types of buyers: primary residence owners and investors chasing rental income. Your financing choice depends entirely on which category you fall into.
Conventional loans reward W-2 earners with strong credit and tax returns. DSCR loans ignore your personal income entirely, underwriting based on what the property earns in rent.
Conventional loans require tax returns, pay stubs, and W-2s to prove income. Lenders verify your debt-to-income ratio stays below 50%, counting car payments, student loans, and all monthly obligations.
You'll need 620+ credit for approval, though 740+ gets the best rates. Down payments start at 3% for owner-occupied homes, but investment properties require 15-25% down depending on credit.
DSCR loans skip tax returns and pay stubs completely. Instead, lenders order a rent schedule showing what the property generates monthly, then divide that by your proposed mortgage payment.
You need a DSCR ratio above 1.0, meaning rent covers the full payment. Most deals require 20-25% down, and credit standards sit around 660-680 minimum depending on the lender.
Conventional loans beat DSCR on rate every time. You'll pay 0.50-1.50% more for DSCR financing because these are non-QM loans with higher lender risk.
DSCR makes sense when you can't prove traditional income—self-employed investors with write-offs, 1099 contractors, or portfolio holders buying multiple properties. Conventional works for everyone else buying a primary home or single rental with clean W-2 income.
Choose conventional if you're buying a primary residence or have W-2 income that looks good on paper. The lower rate saves tens of thousands over 30 years, and qualifying is straightforward.
Pick DSCR if you're an investor who can't document income traditionally, or if the property cash flows well but your personal DTI is maxed. This loan type exists specifically for rental investors who prioritize portfolio growth over perfect tax efficiency.
No. DSCR loans only work for investment properties that generate rental income. Primary homes need conventional or other owner-occupied financing.
Conventional starts at 620 credit but gets best pricing at 740+. DSCR typically requires 660-680 minimum with less rate benefit for higher scores.
Yes. Both loan types need full appraisals. DSCR lenders also order a rent schedule to verify the property's income potential.
Conventional drops PMI at 20% down. DSCR loans don't use PMI but build the risk premium into the rate instead.
DSCR often closes quicker because there's no employment verification or tax return analysis. Conventional takes longer due to income documentation requirements.