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in Whittier, CA
Whittier investors face a choice: prove personal income or prove the property pays for itself. Conventional loans require tax returns and W-2s. DSCR loans ignore your income entirely and qualify you based on rental cash flow.
Most owner-occupants need conventional financing. Investment property buyers often find DSCR loans faster and simpler, especially if they're self-employed or own multiple rentals already.
Conventional loans offer the lowest rates and can work for both primary homes and investment properties in Whittier. You need a 620 credit score minimum, though 740+ gets you the best pricing. Debt-to-income ratio matters—lenders want to see you under 50% total.
Investment properties require 15-25% down with conventional financing. Your tax returns need to show stable income for two years. If you're buying a Whittier duplex to live in one unit, you can put just 5% down and use projected rental income to qualify.
DSCR loans qualify you based on one number: monthly rent divided by monthly mortgage payment. Whittier lenders want to see 1.0 or higher, meaning the rent covers the full payment. No tax returns, no pay stubs, no employment verification.
You need 20-25% down and a 660 credit score minimum. Rates run higher than conventional—expect to pay 0.5-1% more. But approval happens in days instead of weeks because lenders don't dig through your financial history.
The documentation split is dramatic. Conventional loans need two years of tax returns, W-2s, recent pay stubs, and full asset verification. DSCR loans need a lease agreement and an appraisal showing market rent. That's it.
Rates differ by about 0.75% on average—Conventional at 6.5% looks like 7.25% with DSCR. On a $500,000 Whittier rental, that's $230 more per month. But if your tax returns show losses from depreciation, conventional lenders might decline you while DSCR lenders don't care.
Use conventional if you're buying a primary home or your tax returns show strong W-2 income. The rate savings matter over 30 years. Use DSCR if you're self-employed, own multiple properties, or your personal income looks messy on paper despite solid cash flow.
Whittier investors often start with conventional for their first rental, then switch to DSCR for properties 2-4 when documentation becomes a hassle. If the property rent covers 100% of the payment, DSCR approval is nearly automatic regardless of what your tax return says.
No. DSCR loans work only for investment properties. Primary homes require conventional, FHA, or VA financing with full income documentation.
They use the lower of actual lease amount or appraiser's market rent opinion. If you're buying vacant, they use the appraisal rent figure only.
Some do, typically 2-3 years. Conventional loans rarely have prepayment penalties. Always check the term sheet before committing.
Yes. DSCR cash-out refis work the same way—qualify on rent coverage, skip income docs, expect higher rates than conventional.
DSCR typically closes in 18-21 days. Conventional takes 25-35 days because underwriters verify employment, income, and assets thoroughly.