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in Walnut, CA
Walnut's strong schools and stable neighborhoods attract both owner-occupants and investors. The loan you pick depends on whether you're moving in or renting out.
Conventional loans offer lower rates but require W-2 income verification. DSCR loans skip personal income checks and qualify on rental cash flow alone.
Conventional loans are the default choice for anyone buying a primary residence in Walnut. You get the lowest rates available — usually 0.5-1% below investor programs.
You need documented income, 620+ credit, and proof of employment. Most W-2 earners clear these hurdles easily, making conventional the cheapest path to ownership.
DSCR loans qualify based on one number: whether the property's rent covers the mortgage payment. If the rent-to-payment ratio hits 1.0 or higher, you're approved.
This works for investors with multiple properties, self-employed borrowers with messy tax returns, or anyone building a rental portfolio. No W-2 required.
Rate difference runs 1-2% higher on DSCR because you're skipping income verification. A conventional loan at 6.5% might cost 7.5-8% as a DSCR.
Conventional caps you at 10 financed properties. DSCR has no limit — some investors carry 30+ rentals on DSCR financing without hitting a wall.
Conventional requires two years of tax returns, W-2s, and pay stubs. DSCR pulls a credit report and orders an appraisal with rent schedule. That's it.
Pick conventional if you're living in the property or own fewer than 5 rentals. The rate savings over 30 years easily justify the paperwork.
Go DSCR if you're scaling a portfolio, writing off losses that tank your AGI, or buying a fixer that won't appraise yet but will rent strong. Pay the rate premium to avoid income verification.
Walnut's rental market supports both paths. A $900K single-family rents for $4,200-$4,800, which clears DSCR thresholds at 25% down.
Yes, but you need 15% down and rates tick up 0.5-0.75%. You'll also hit Fannie Mae's 10-property cap if you're scaling a portfolio.
Most lenders want 1.0 or higher — rent covers the full mortgage payment. Some allow 0.75 DSCR if you put 30% down and have strong credit.
Yes, if the city allows STRs in that zone. Lenders use projected rental income from an appraiser's market rent analysis.
Absolutely. Investors do this to pull equity without showing personal income. Expect higher rates but no tax return requests.
DSCR typically closes in 21 days because there's no income verification. Conventional takes 30-45 days with full underwriting.