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in Santa Fe Springs, CA
Santa Fe Springs investors face a clear choice: conventional financing that scrutinizes your W-2 income, or DSCR loans that only care if the rental property can cover its own mortgage. Most buyers default to conventional without realizing DSCR exists.
The right loan depends on whether you're buying your first duplex or your tenth rental property. We see both loans close successfully in this market, but they serve completely different borrower profiles.
Conventional loans demand full income documentation: tax returns, W-2s, pay stubs. Lenders verify your debt-to-income ratio stays below 43-50%. You'll need credit scores above 620 for approval, 740+ for best rates.
These loans offer the lowest rates in the market when you qualify. Down payments start at 3% for owner-occupied properties, 15-20% for investment properties. Loan limits max out at $832,750 for single-family homes in Los Angeles County.
DSCR loans ignore your personal income entirely. Lenders calculate the property's monthly rental income divided by its monthly debt obligations. Ratios above 1.0 mean the property pays for itself and you qualify.
Expect rates 1-2% higher than conventional, with 20-25% down required. No tax returns, no pay stubs, no employment verification. Perfect for self-employed borrowers or investors with multiple properties already affecting their DTI.
Local decision guide
Use this comparison to weigh Conventional Loans and DSCR Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Santa Fe Springs.
Santa Fe Springs investors face a clear choice: conventional financing that scrutinizes your W-2 income, or DSCR loans that only care if the rental property can cover its own mortgage. Most buyers default to conventional without realizing DSCR exists.
The right loan depends on whether you're buying your first duplex or your tenth rental property. We see both loans close successfully in this market, but they serve completely different borrower profiles.
Conventional loans demand full income documentation: tax returns, W-2s, pay stubs. Lenders verify your debt-to-income ratio stays below 43-50%. You'll need credit scores above 620 for approval, 740+ for best rates.
Income verification is the fault line. Conventional lenders want every document proving you earn enough to cover all your debts. DSCR lenders pull a rent schedule and property appraisal, then move forward if the math works.
Rates reflect this difference. Conventional loans run 6.5-7.5% in current conditions. DSCR hits 8-9.5%. You're paying for the flexibility to skip income documentation. Rates vary by borrower profile and market conditions.
Choose conventional if you're a W-2 employee with steady income and clean tax returns. You'll get better rates and lower down payments. The documentation hassle is worth the savings over 30 years.
Pick DSCR if you're self-employed, own multiple rentals, or write off enough business expenses that your tax returns show low income. We see this constantly: investors who earn $200K but show $60K on paper. DSCR ignores that problem entirely.
Yes, DSCR doesn't require previous landlord experience. You just need 20-25% down and rental income that covers the mortgage payment.
DSCR typically closes in 21-30 days since there's no income verification. Conventional takes 30-45 days with full documentation review.
Yes. Conventional covers 2-4 units as investment properties. DSCR handles 1-4 units with the same rental income calculation.
Absolutely. Many investors refinance to DSCR when adding more properties would push their conventional DTI too high.
Conventional dominates for first-time investors. Experienced buyers with multiple properties shift to DSCR as their portfolios grow.