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in Fairfax, CA
Fairfax investors face a clear choice: conventional financing with lower rates or DSCR loans that ignore your W-2 income entirely. Most buyers start with conventional, but rental property investors often hit income qualification walls that DSCR loans solve.
Conventional loans require you to prove personal income through tax returns and pay stubs. DSCR loans only care if the rental property generates enough cash flow to cover its mortgage payment.
Conventional loans offer the lowest rates available for Fairfax properties—typically 0.5% to 1% below DSCR pricing. You'll need W-2s or two years of tax returns showing steady income, plus credit scores above 620.
These work great for your first investment property or if you're a high-income earner who doesn't write off much. DTI caps at 50% on most files, so your existing debts matter heavily in approval.
DSCR loans qualify you based on one number: rental income divided by the mortgage payment. Hit 1.0 or higher and you're approved, regardless of what your tax return shows.
These programs shine for self-employed borrowers who write off income aggressively or investors scaling past 4-6 properties. Expect 20-25% down and rates about a point higher than conventional.
Rate spread matters most. Conventional runs 6-7% right now while DSCR sits closer to 7-8%. On a $900,000 Fairfax duplex, that's $750 more per month—but DSCR approves deals conventional lenders reject outright.
Qualification flips the script. Conventional scrutinizes your job, income history, and existing debts. DSCR ignores all of it and focuses solely on whether market rent covers the new mortgage payment plus taxes and insurance.
Choose conventional if your tax returns look strong and you're buying properties 1-4. The rate savings compound over 30 years and qualification is straightforward with clean W-2 income.
Go DSCR if you're self-employed with aggressive write-offs, scaling past 6 properties, or buying a rental that covers its own payment but your DTI is maxed. You pay for flexibility with a higher rate, but you actually get approved.
Yes. Most investors use conventional on their first few properties for better rates, then switch to DSCR once DTI limits block conventional approval.
We use either a signed lease or an appraisal showing market rent. No tenant needed at closing—projected rent qualifies you.
Conventional needs 620 minimum, 680+ for best pricing. DSCR typically requires 680-700 depending on down payment and property type.
Higher Fairfax rents help DSCR ratios significantly. A property that struggles to qualify in cheaper markets often hits 1.2+ DSCR here.
You'd refinance into DSCR, not convert. Most investors do this when they need to pull equity or their income situation changes.