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in Temple City, CA
Temple City real estate attracts both owner-occupants and investors. The loan you choose depends on whether you're buying your home or a rental property.
Conventional loans work great for primary residences and lower-leverage investments. DSCR loans let you skip income verification entirely if the property cash flows.
Conventional loans from Fannie Mae and Freddie Mac offer the lowest rates available. You need 620+ credit, verifiable income, and standard debt ratios under 50%.
Temple City buyers typically put 5-20% down depending on occupancy. Investment properties require 15-25% down and come with higher rates than primary homes.
These loans cap at $832,750 for single-family homes in Los Angeles County. Above that, you need a jumbo loan with stricter requirements.
DSCR loans ignore your W-2 income completely. Instead, lenders calculate whether rent covers the mortgage payment plus property expenses.
You need a DSCR of 1.0 or higher, meaning rent equals or exceeds the full payment. Many Temple City rentals hit 1.1-1.25 ratios with 25% down.
Expect rates 1.5-2.5% above conventional. The tradeoff: no tax returns, no employment letters, no explanation of your self-employment income.
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 Temple City.
Temple City real estate attracts both owner-occupants and investors. The loan you choose depends on whether you're buying your home or a rental property.
Conventional loans work great for primary residences and lower-leverage investments. DSCR loans let you skip income verification entirely if the property cash flows.
Conventional loans from Fannie Mae and Freddie Mac offer the lowest rates available. You need 620+ credit, verifiable income, and standard debt ratios under 50%.
Conventional loans verify everything: income, assets, employment history. DSCR loans only care about the property's rent versus its expenses.
Rate difference runs 1.5-2.5 points. A conventional loan at 7% means DSCR comes in around 8.5-9.5%. That gap shrinks if you have complex income.
Down payment floors matter. Conventional allows 5% down for owner-occupants, 15% for investors. DSCR starts at 20% and most deals use 25-30%.
Use conventional if you're buying your primary home or have clean W-2 income. The rate advantage saves thousands annually on Temple City properties.
Choose DSCR if you're self-employed, own multiple rentals, or can't document income easily. The higher rate is the cost of skipping underwriting hassles.
Some investors use DSCR even with W-2 income to preserve liquidity or avoid debt ratio issues. Calculate whether the rate increase outweighs the flexibility.
No. DSCR loans are for investment properties only. If you're occupying the home, conventional is your option.
They divide expected rent by the full monthly payment (PITI plus HOA). A $3,000 rent with $2,700 payment equals 1.11 DSCR.
Conventional requires 620 minimum, 740+ for best rates. DSCR typically needs 680 but some lenders go to 660.
Some lenders allow it. They use projected income from comparable listings, but rates increase 0.5-1% versus long-term rentals.
Yes. Refinance once you can document income or want a lower rate. You'll pay standard closing costs again.