Loading
in Corte Madera, CA
Corte Madera sits in one of California's most expensive rental markets. The loan you pick can make or break your deal.
Conventional loans work for primary buyers with strong W-2 income. DSCR loans are built for investors who want to qualify on rent, not salary.
Conventional loans aren't government-backed. That means stricter credit standards — but also no upfront mortgage insurance premiums.
Lenders want at least a 620 credit score. Put 20% down and you skip private mortgage insurance altogether.
DSCR loans qualify you on the property's rental income — not your tax returns or pay stubs. Self-employed investors use these constantly.
Lenders calculate your Debt Service Coverage Ratio. A DSCR above 1.0 means the rent covers the mortgage. Most lenders want 1.20 or higher.
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 Corte Madera.
Corte Madera sits in one of California's most expensive rental markets. The loan you pick can make or break your deal.
Conventional loans work for primary buyers with strong W-2 income. DSCR loans are built for investors who want to qualify on rent, not salary.
Conventional loans aren't government-backed. That means stricter credit standards — but also no upfront mortgage insurance premiums.
HousingWire flagged the 30-year fixed hitting 6.57% recently — that spread matters for DSCR borrowers, who typically see rates 0.5 to 1.5 points higher than conventional.
Conventional loans cap out at conforming limits set by the FHFA. DSCR loans can go much higher, which matters in a market like Marin County.
Down payment requirements differ too. Conventional can go as low as 3% for owner-occupied. DSCR lenders rarely go below 20% — 25% is common. Rates vary by borrower profile and market conditions.
Buying a home to live in? Conventional is almost always the right call. Lower rate, lower down payment, easier approval if your income is clean.
Buying a rental in Corte Madera and your write-offs crush your taxable income? DSCR is likely your only real option. The property qualifies itself.
Some investors use both — conventional on their primary, DSCR to scale the rental portfolio without hitting debt-to-income walls.
No. DSCR loans are for investment properties only. Use conventional for a primary residence.
Most DSCR lenders want 680 or higher. Some go to 660, but rates worsen fast below that threshold.
Yes, up to 10 financed properties. But lenders count your personal debt load, so DTI limits apply.
Conventional almost always wins on rate. DSCR lenders price in more risk since no income is verified. Rates vary by borrower profile and market conditions.
Divide the monthly rent by the total mortgage payment. A $4,000 rent on a $3,200 payment gives you a 1.25 DSCR.
Yes. DSCR lenders don't count your other debts the same way. That's exactly why investors prefer them for scaling.