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in San Fernando, CA
San Fernando investors face a simple choice: qualify based on your W-2 income or let the property qualify itself. Conventional loans dominate owner-occupied purchases, while DSCR loans exist for rental portfolios.
Most San Fernando buyers start with conventional financing. Investors with multiple properties or complex tax returns switch to DSCR when their income documentation becomes a liability instead of an asset.
Conventional loans offer the lowest rates in San Fernando when you meet Fannie Mae and Freddie Mac standards. You'll need W-2s, tax returns, and a 620+ credit score to start the conversation.
Down payment minimums hit 15% on investment properties, 20% if you want to skip mortgage insurance. Rates vary by borrower profile and market conditions, but conventional typically beats non-QM options by 1-2 percentage points.
Debt-to-income ratios cap at 50% for most scenarios. Lenders count every mortgage payment, car loan, and credit card minimum when calculating your qualifying income.
DSCR loans ignore your tax returns entirely. Underwriters care about one number: does the rental income cover the mortgage payment by at least 1.0x to 1.25x?
San Fernando investors use DSCR when they've maxed out conventional financing or write off too much income to qualify traditionally. You'll pay 20-25% down and accept rates 1.5-2.5% above conventional.
No tax returns. No W-2s. No employment verification. The property income statement is the entire file for most DSCR lenders we work with.
Conventional loans examine your entire financial life. DSCR loans examine one property's rent roll and appraisal. This creates a 2-3% rate spread that narrows or widens based on your tax strategy.
Conventional maxes out at 10 financed properties total across your portfolio. DSCR has no property count limits with our wholesale lenders. Buy your 15th rental the same way you bought your first.
Credit requirements differ too. Conventional starts at 620 for investment properties. DSCR typically requires 680+ for competitive pricing, though some programs dip to 660.
Choose conventional if this is your first rental or you can show strong W-2 income. The rate savings compound over 30 years. DSCR makes sense when your tax returns don't reflect your actual cash flow.
San Fernando investors building portfolios past 4-5 properties eventually hit conventional loan limits. DSCR becomes the only path forward unless you pay cash. Self-employed borrowers often switch to DSCR after their second property.
Yes, but you'll pay 1.5-2.5% more in rate compared to conventional. Most investors save DSCR for later properties when they've maxed conventional limits.
Most lenders want 6-12 months of mortgage payments in reserves per property. Requirements increase with larger portfolios or lower credit scores.
Lenders use either current lease agreements or 75% of appraised market rent. The property must generate enough to cover the new mortgage payment by 1.0-1.25x.
You'd refinance from one to the other. Most investors keep conventional loans in place due to lower rates, adding new properties via DSCR.
DSCR often closes in 18-21 days since there's no income verification. Conventional takes 25-35 days due to employment and tax return review.