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in Seaside, CA
Seaside sits in a unique position on the Monterey Peninsula—close to military housing, rental demand from Fort Ord, and a mix of owner-occupants and investors. Your loan type depends entirely on whether you're living in the property or renting it out.
Conventional loans work for primary residences and second homes with standard W-2 income. DSCR loans qualify investors based on the rental income the property generates, not your tax returns.
Conventional loans require proof of income, tax returns, and a minimum 620 credit score. You'll put down at least 3% for a primary residence, 10% for a second home, and 15% for an investment property.
Rates are lower than DSCR loans because lenders view owner-occupants as lower risk. You'll pay PMI on any loan with less than 20% down. Debt-to-income ratio matters—lenders want to see all your debts stay under 43% of your gross income.
DSCR loans ignore your personal income entirely. Lenders calculate the property's monthly rent divided by the mortgage payment—that's your debt service coverage ratio. Most lenders want to see 1.0 or higher, meaning rent covers the full payment.
You'll need 20-25% down and a 660+ credit score. Rates run 0.5-1.5% higher than conventional loans, but you skip the tax return hassle. As of February 2026, some lenders are exploring crypto assets for qualification on certain non-QM products, though that's still emerging.
The biggest split is occupancy. If you're moving into a Seaside home near Del Rey Oaks or buying near the beach for yourself, conventional wins on rate and down payment. If you're an investor eyeing rental demand from CSUMB or military families, DSCR makes sense.
Income documentation separates the two. Conventional loans require two years of tax returns and paystubs. DSCR loans use a rent schedule or appraisal estimate instead. With Fed rate cuts expected later this year, both loan types may see lower rates, but the spread between them stays consistent.
Pick conventional if you're living in the property or buying a vacation home in Seaside. The lower rate and smaller down payment save you money upfront. Pick DSCR if you're treating this as a rental and don't want to show tax returns.
Most Seaside investors we work with use DSCR for properties near CSUMB or in neighborhoods with strong military rental demand. Owner-occupants stick with conventional unless they're self-employed with complicated tax returns—then DSCR becomes an option even for a primary home.
No. DSCR loans are investment-only. You'll need conventional or another owner-occupant product if you're moving in.
Yes, but you'll need 15% down and show the rental income on your tax returns. DSCR loans skip that step.
Conventional loans run 0.5-1.5% lower than DSCR loans because lenders see owner-occupants as less risky.
DSCR loans don't charge PMI. You'll pay a higher rate instead, which achieves the same economic result for the lender.
Conventional loans start at 620. DSCR loans typically require 660 or higher depending on the lender.