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in Willits, CA
Willits investors face a clear choice: traditional conventional financing or rental-income-based DSCR loans. Your employment situation and property goals determine which path makes sense.
Conventional loans reward W-2 income and low debt ratios. DSCR loans ignore your tax returns entirely and focus on whether the property pays for itself.
Conventional loans use your job history, credit score, and debt-to-income ratio for approval. Lenders want to see two years of stable W-2 income and typically require 620+ credit for investment properties.
Down payments start at 15% for investment properties, often 20% for best rates. You'll need tax returns, pay stubs, and bank statements. Rates vary by borrower profile and market conditions.
DSCR loans qualify you based on rental income divided by the monthly mortgage payment. If that ratio hits 1.0 or higher, you can qualify regardless of your personal income or tax returns.
Most lenders want 20-25% down and 680+ credit. You don't provide pay stubs or W-2s. The underwriter uses a rent schedule or appraisal to calculate property income.
Conventional loans care about your job and tax returns. DSCR loans only care if the property cash flows. Self-employed borrowers with write-offs often can't qualify conventionally but sail through DSCR underwriting.
Rates on DSCR loans run 0.5% to 1.5% higher than conventional due to the flexibility. Credit score matters more for DSCR pricing. Conventional caps your total properties more strictly than DSCR programs do.
Choose conventional if you have W-2 income, clean tax returns, and want the lowest rate. It works best for salaried employees buying their first rental in Willits.
Go DSCR if you're self-employed with tax write-offs, building a portfolio, or the property generates strong rent. Pay a slightly higher rate to skip the income documentation entirely.
No. DSCR loans are investment-only and require the property to be rented. You need conventional financing for any owner-occupied scenario.
DSCR often closes quicker because there's no income verification. We're not waiting on employer letters or tax transcripts from the IRS.
Yes. Conventional covers up to 4 units. DSCR handles 1-4 units and sometimes larger multi-family with adjusted terms.
Absolutely. Investors often start conventional then refinance to DSCR when buying more properties and hitting DTI limits.
Conventional can go as low as 620 for investment properties. DSCR lenders typically require 680 minimum credit.