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in Belvedere, CA
Belvedere's luxury market attracts two types of buyers: primary residents who need conventional financing and investors chasing rental income. These loans solve completely different problems.
Conventional loans require W-2 income and low debt ratios. DSCR loans ignore your tax returns and qualify you on rental cash flow alone.
Conventional loans are the standard for owner-occupied homes. You qualify with paystubs, tax returns, and a 620+ credit score. Rates vary by borrower profile and market conditions.
Down payments start at 3% for first-time buyers, 5% for repeat buyers. Investment properties need 15-25% down. Marin's high prices mean jumbo limits kick in fast—conventional loans cap at $806,500 in 2024.
Lenders scrutinize your debt-to-income ratio, which can't exceed 43-50% depending on the program. Your personal income drives everything here.
DSCR loans flip the script for investors. Lenders care about one thing: does the property's rent cover the mortgage? They don't want your paystubs or employment history.
You qualify when the property's monthly rent exceeds the monthly debt payment. Most lenders want a 1.0 DSCR minimum—rent equals or beats the mortgage. Some accept 0.75 DSCR if you put more down.
Expect 20-25% down minimums and rates 1-2% higher than conventional. No loan limits exist like conventional caps. Perfect for self-employed buyers or investors with complex tax returns.
Qualifying methods separate these loans completely. Conventional underwriters want two years of tax returns and steady W-2 income. DSCR lenders want a lease agreement and appraisal showing market rent.
Conventional loans beat DSCR on rates by 1-2 percentage points. But DSCR wins on simplicity—no tax return headaches, no explaining business write-offs that tank your qualifying income.
Belvedere investment properties face different rules. Conventional loans allow up to 10 financed properties. DSCR lenders often go higher with no hard cap.
Buy conventional for your primary home or if you're a W-2 earner with clean taxes. The lower rates save thousands monthly on Belvedere's million-dollar price points.
Choose DSCR if you're buying investment property and don't want income verification. Self-employed borrowers who write off everything love DSCR—your 1099 income doesn't matter here.
I see Belvedere investors use DSCR for cash flow properties while keeping conventional loans for personal residences. The higher DSCR rate still pencils when rent covers the payment.
No. DSCR loans only work for investment properties that generate rental income. Primary residences need conventional or other owner-occupied financing.
Conventional loans offer rates 1-2% lower than DSCR. DSCR's higher rates reflect the no-income-verification risk lenders take on.
Yes, but differently. Conventional becomes jumbo with stricter rules. DSCR has no conforming limit and treats all amounts the same.
Yes, up to 10 financed properties. You'll need strong income and reserves. DSCR loans typically allow unlimited investment properties.
DSCR often closes faster—no employment verification or tax transcript delays. Conventional takes longer with full income documentation requirements.