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in San Juan Capistrano, CA
San Juan Capistrano attracts two very different borrowers. Owner-occupants want competitive rates on a primary home. Investors want rental income to carry the loan.
Conventional loans serve the first group. DSCR loans serve the second. Picking the wrong one wastes time and can kill a deal.
Conventional loans are standard mortgages not backed by the government. Fannie Mae and Freddie Mac set the rules.
You need a 620 credit score minimum. Put down 20% and you skip private mortgage insurance entirely. Rates stay competitive for strong borrowers.
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property's monthly rent by the monthly mortgage payment.
A ratio of 1.0 means rent covers the payment exactly. Most lenders want 1.1 or higher. Your personal W-2 or tax returns never enter the picture.
HousingWire flagged the 30-year fixed hitting 6.57% with applications dropping sharply — that rate pressure hits conventional borrowers directly. DSCR rates run higher, but investors price that into the rent math.
Conventional loans cap out at conforming limits for Orange County. DSCR loans can go higher but require a larger down payment, usually 20–25%.
Buying a home to live in near the Mission? Conventional is almost always the right call. Better rates, lower down payment options, and standard approval timelines.
Buying a rental in San Juan Capistrano? Run the DSCR math first. If the rent covers the payment at 1.1x or better, DSCR likely gets you to the finish line faster than trying to document income.
Some lenders accept projected Airbnb income. You'll need a market rent analysis from a licensed appraiser to support the number.
Most DSCR lenders want at least 660. Stronger credit gets you a better rate. Rates vary by borrower profile and market conditions.
Yes, but lenders add a rate adjustment for non-owner-occupied properties. Expect a higher rate than you'd get on a primary home.
DSCR loans skip income doc review, so they can close faster. Both typically close in 21–30 days with a prepared borrower.
Yes. DSCR loans don't count against your conventional loan eligibility. Investors use both programs to grow a portfolio.
Most lenders want 6–12 months of reserves in the bank. The stronger your DSCR ratio, the more flexible lenders tend to be.