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in Buena Park, CA
These two loans solve different problems. Conventional is for buyers. DSCR is for investors buying rental property.
Buena Park has solid rental demand near major employment corridors. That makes this comparison worth understanding before you pick a loan.
Conventional loans are standard financing not backed by any government agency. Lenders qualify you on your personal income, credit, and debt.
You typically need a 620 credit score minimum. Put down 20% and you skip private mortgage insurance entirely.
Bankrate's latest lender survey shows 30-year conforming rates at 6.27% as of March 2026. Rates vary by borrower profile and market conditions.
DSCR stands for Debt Service Coverage Ratio. Lenders look at whether the rent covers the mortgage — not your W-2.
A DSCR above 1.0 means the property earns enough to cover its debt. Most lenders want 1.1 or higher to approve the loan.
No tax returns. No employment verification. This is built for investors who own multiple properties or have complex income.
Conventional requires full income documentation. DSCR skips it completely. That single difference changes who can qualify.
Rates on DSCR loans run higher than conventional. You're paying for flexibility — lenders price the added risk into the rate.
Conventional loans have conforming loan limits set by the FHFA. DSCR loans are non-QM products with no such cap enforced.
Buying a home to live in? Conventional is your loan. Better rates, lower down payment options, and standard approval process.
Buying a rental in Buena Park to generate cash flow? DSCR is built for that deal. Your personal income doesn't enter the equation.
Self-employed investors with write-offs often look weak on paper. DSCR sidesteps that problem by focusing on the property, not the person.
No. DSCR is for investment properties only. For a primary residence, you need conventional or a government-backed loan.
Most DSCR lenders want at least a 660 score. Some go to 640, but expect a higher rate at the floor.
Yes, conventional rates are generally lower. DSCR loans carry a rate premium for the flexible income qualification.
Yes. Many DSCR lenders allow LLC vesting. Conventional loans almost never permit it.
They divide the monthly rent by the total mortgage payment. A ratio at or above 1.0 means the property covers its own debt.
W-2 borrowers typically provide two years of returns. Self-employed borrowers always need them for conventional approval.