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in Fullerton, CA
Fullerton investors and homebuyers face the same fork: qualify on personal income or let the property do the talking. These two loans solve very different problems.
Conventional loans work for primary buyers and traditional investors with strong W-2 or tax return income. DSCR loans are built for rental investors who keep income off their personal returns.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They offer competitive rates and terms for borrowers with solid credit and documented income.
You'll need at least a 620 credit score, though 740+ gets you the best pricing. Down payments start at 3% for primary homes and 15% for investment properties.
DSCR loans qualify based on the rental property's cash flow — not your tax returns. Lenders divide the monthly rent by the mortgage payment to get your DSCR ratio.
Most lenders want a DSCR of 1.0 or higher, meaning rent covers the payment. Strong Fullerton rental income can push that ratio well above 1.0.
The core difference is qualification. Conventional lenders scrutinize your DTI — debt-to-income ratio — and tax returns. DSCR lenders look only at the property's rent vs. payment.
HousingWire flagged that the 30-year fixed hit 6.57% — that rate gap between conventional and DSCR matters for Fullerton investors running cash flow numbers. Rates vary by borrower profile and market conditions.
If you're buying a primary home or have clean W-2 income to document, conventional wins on rate every time. Don't pay DSCR pricing when you don't have to.
If you're a self-employed investor with write-offs that gut your taxable income, DSCR is the play. The property qualifies itself — your Schedule C doesn't hurt you.
No. DSCR loans are for investment properties only. Primary home buyers need conventional, FHA, or another owner-occupant loan.
Most DSCR lenders want a 660-680 minimum. Higher scores unlock better rates and lower down payment requirements.
Expect 20-25% down on most DSCR loans. Some lenders go to 15% with stronger credit and a higher DSCR ratio.
Yes, up to 10 financed properties under Fannie Mae guidelines. You'll need 15-25% down and must document personal income.
DSCR is almost always easier. Your write-offs don't count against you because the lender never looks at your personal income.
Yes. DSCR rates typically run 0.5-1.5% higher than conventional. That spread directly affects your cash flow math. Rates vary by borrower profile and market conditions.