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in San Rafael, CA
San Rafael is one of Marin County's most in-demand markets. Buyers and investors here face high prices and tight inventory — your loan choice matters.
Conventional loans work for primary residence buyers with strong W-2 income. DSCR loans are built for investors who qualify on rental income alone.
Conventional loans are the standard for owner-occupied purchases. Lenders look at your income, credit, and debt-to-income ratio to approve you.
You'll need at least a 620 credit score. Put down 20% and you skip private mortgage insurance, which saves real money on Marin County price points.
DSCR loans qualify you based on the rental property's cash flow — not your tax returns or pay stubs. That's the whole point.
Lenders calculate the Debt Service Coverage Ratio: monthly rent divided by the mortgage payment. Most lenders want a DSCR of 1.0 or higher to approve the loan.
HousingWire flagged the 30-year fixed hitting 6.57% with applications dropping sharply — DSCR rates run even higher, which squeezes cash flow math on Marin rentals.
Conventional loans cap at conforming loan limits for Marin County. DSCR loans can go into jumbo territory, which matters given San Rafael's price range.
Conventional requires full income verification. DSCR lenders don't touch your W-2 or tax returns — the property does the qualifying for you.
Buying a home to live in? Conventional is almost always the right call. Lower rates and better terms are hard to beat when you qualify on income.
Buying a rental property in San Rafael? DSCR is built for that. Self-employed investors and those with complex tax returns especially benefit here.
Run the DSCR math before you commit. If the rent barely covers the mortgage, a rate spike can flip the deal upside down fast. Rates vary by borrower profile and market conditions.
No. DSCR loans are investment property products only. For a primary residence, you need conventional or government-backed financing.
Most DSCR lenders want at least a 680 credit score. Some go lower, but rates get worse fast below that threshold.
Yes, up to four units. Beyond that, you're in commercial loan territory and conventional guidelines no longer apply.
Monthly gross rent divided by the total mortgage payment. A ratio of 1.0 means rent exactly covers the payment — lenders usually want at or above that.
Conventional can go as low as 3% for qualified buyers. DSCR loans typically require 20-25% down on investment properties.
Yes. Most DSCR lenders allow LLC vesting. Conventional loans almost never permit this — they require individual borrower ownership.