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in Fairfax, CA
Fairfax is a small town with a tight housing market. Buyers and investors here face the same core question: which loan fits the deal?
Conventional loans work for primary residence buyers with strong W-2 income. DSCR loans are built for rental investors who qualify on property cash flow — not personal taxes.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They require verified personal income, solid credit, and typically 5–20% down.
Rates are competitive for qualified borrowers. Marin County's high prices can push loan amounts into jumbo territory, so check conforming limits before assuming conventional works.
DSCR loans skip your tax returns entirely. Lenders look at the rental property's income versus its debt payments — that ratio determines approval.
A DSCR of 1.0 means rent covers the mortgage exactly. Most lenders want 1.1 or higher. Self-employed investors with write-offs love this loan for that reason.
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 Fairfax.
Fairfax is a small town with a tight housing market. Buyers and investors here face the same core question: which loan fits the deal?
Conventional loans work for primary residence buyers with strong W-2 income. DSCR loans are built for rental investors who qualify on property cash flow — not personal taxes.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They require verified personal income, solid credit, and typically 5–20% down.
The biggest split is how you qualify. Conventional lenders scrutinize your DTI — debt-to-income ratio. DSCR lenders only care what the property earns.
HousingWire flagged the 30-year fixed hitting 6.57% with applications dropping sharply. That rate pressure hits DSCR investors harder — higher rates compress cash flow ratios on Fairfax rentals.
Buying a home to live in? Conventional is your path — lower rates, more program options, and lender familiarity with Marin County pricing.
Buying a rental in Fairfax and you're self-employed or already carry other mortgages? DSCR cuts through the income documentation problem fast.
No. DSCR loans are for investment properties only. Use conventional financing for a primary residence.
Conventional typically requires 620 minimum. DSCR lenders usually want 660–680, sometimes higher for better rates.
No. That's the point. Qualification is based on the rental property's income, not your personal returns.
Conventional rates run lower for qualified borrowers. DSCR carries a premium for the flexible qualification. Rates vary by borrower profile and market conditions.
Yes — conventional allows investment property purchases. Down payment requirements are higher, typically 15–25%.
Most DSCR lenders require 20–25% down on investment properties. Some programs allow 15% with stronger cash flow.