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in Chowchilla, CA
Chowchilla sits in central Madera County with a mix of single-family homes and investment properties. If you're buying a primary residence, conventional financing offers the lowest rates and most flexible terms.
DSCR loans work differently—they ignore your W-2 income entirely. Instead, lenders qualify you based on the property's rental income, making them ideal for investors who own multiple properties or have irregular personal income.
Conventional loans require full income documentation and strong credit. You'll need W-2s, pay stubs, tax returns, and typically a 620+ credit score for primary homes.
Down payments start at 3% for first-time buyers and 5% for repeat buyers on owner-occupied properties. Investment properties require 15-25% down and come with higher rates than primary residences.
DSCR loans qualify you on rental income alone. Lenders calculate the property's monthly rent divided by the mortgage payment—anything above 1.0 means the rent covers the debt.
Most DSCR lenders want 20-25% down and 680+ credit. You won't submit tax returns or pay stubs. Instead, you'll provide a lease agreement or rent appraisal showing the property generates enough income.
The core difference is underwriting method. Conventional lenders verify your job, income, and debt-to-income ratio. DSCR lenders only care if the property's rent exceeds the mortgage payment by enough margin.
Rates differ significantly. Conventional loans for primary homes price 1-2% lower than DSCR loans. But if you're buying a rental and your personal income complicates approval, DSCR often wins despite the rate premium.
If you're moving to Chowchilla and living in the home, conventional loans offer better rates and lower down payments. The income documentation isn't a problem when you have steady W-2 income.
DSCR makes sense for investors buying rentals—especially if you own multiple properties, file Schedule C income, or want to avoid showing personal tax returns. The higher rate is offset by easier approval and faster closings.
No. DSCR loans only work for investment properties that generate rental income. Owner-occupied homes require conventional or government-backed financing.
Conventional loans start at 620 for primary homes. DSCR lenders typically want 680 or higher, though some accept 660 with larger down payments.
Most lenders want a 1.0 DSCR minimum—meaning monthly rent equals or exceeds the mortgage payment. Some allow 0.75 with compensating factors like higher credit or larger down payments.
DSCR loans often close in 14-21 days because there's no employment verification or income documentation. Conventional loans take 21-30 days with full underwriting.
Yes. DSCR loans don't count against your debt-to-income ratio since they qualify on property income. You can finance unlimited rentals as long as each property cash flows.