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in San Anselmo, CA
San Anselmo investors face a choice between conventional loans that scrutinize your W-2 income and DSCR loans that only care about rental cash flow. The difference matters when you're buying that second property on Bolinas Avenue or expanding your Marin portfolio.
Conventional loans work for owner-occupants and investors with clean tax returns. DSCR loans exist for investors whose income looks complicated on paper but whose properties actually make money.
Conventional loans deliver the best rates in San Anselmo when you have 620+ credit and documented income. You'll need two years of W-2s or tax returns and 3-25% down depending on use. Investment properties require 15-25% down with rates about 0.625% higher than primary homes.
These loans cap at $766,550 for single-family homes in Marin County in 2024. Above that limit you need a jumbo loan with tighter requirements. Debt-to-income ratio can't exceed 50% in most cases, which trips up self-employed borrowers who write off everything.
DSCR loans approve San Anselmo investment properties based on a single number: rental income divided by mortgage payment. Hit 1.0 or higher and you qualify regardless of your tax return. Most lenders want 1.25 to get their best pricing.
You'll pay 1-2% more than conventional rates and put down 20-25%. No income verification means your self-employment write-offs don't hurt you. These work for LLCs, investors with multiple properties, and anyone whose personal income looks messy but whose rentals perform.
Rate difference runs 1-2 percentage points in favor of conventional. On a $700,000 San Anselmo rental that's about $700-1,000 more per month. But conventional requires full income docs while DSCR only needs a lease and appraisal showing market rent.
Conventional loans limit how many financed properties you can own—usually four mortgages total. DSCR lenders don't count existing mortgages against you. They only care if this specific property covers its own payment. That makes DSCR the only option once you hit the conventional property limit.
Choose conventional if you're buying your first rental, have W-2 income, and want the lowest payment. The rate savings over 30 years easily justify the documentation hassle. Most San Anselmo properties rent high enough to qualify under conventional debt-to-income rules anyway.
Switch to DSCR when your income is complicated or you're past four financed properties. Also use DSCR for fix-and-rent deals where you'll own through an LLC. The rate premium buys you speed and flexibility that serious investors need.
Yes, if the property is vacant, lenders use appraiser's market rent opinion. Active leases work too but must reflect market rates.
Most DSCR lenders want 680 minimum versus 620 for conventional. Some portfolio lenders go to 660 with larger down payments.
You can refinance anytime but you'll reset to current rates. Only refinance if rates drop or you need to move the property into an LLC.
Neither conventional nor standard DSCR cover Airbnb income. You need specialized short-term rental financing with different underwriting.
Monthly rent divided by PITIA payment (principal, interest, taxes, insurance, HOA). 1.25 or higher gets best pricing from most lenders.