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in Lincoln, CA
Lincoln investors face a choice: qualify with your W-2 income or let the property's rental numbers do the work. Conventional loans dominate owner-occupied purchases, but DSCR loans open doors for investors who can't show traditional income.
If you're buying near Twelve Bridges or Sierra Meadows, the loan you pick determines what you can buy and how fast you close. Both options work in Lincoln—your income situation decides which one makes sense.
Conventional loans require W-2s, tax returns, and proof of stable employment. You'll need 620+ credit for an investment property, with 15-25% down. Rates vary by borrower profile and market conditions, but conventional typically beats DSCR pricing.
These loans hit debt-to-income limits at 50%, which kills deals for investors with multiple properties. If you're self-employed or your tax returns show minimal income for write-offs, you'll struggle to qualify even with strong rental potential.
DSCR loans ignore your tax returns entirely. Underwriters calculate monthly rent divided by the mortgage payment—if that ratio hits 1.0 or higher, you qualify. No W-2s, no pay stubs, no DTI calculation.
You'll pay 20-25% down and accept a higher rate than conventional. But if you own multiple rentals or your business write-offs tank your taxable income, DSCR loans let you keep buying. We see this constantly with Lincoln investors expanding their portfolios.
Conventional loans punish portfolio investors because every property adds to your DTI. DSCR loans don't care—own two rentals or twenty, the calculation stays property-specific. That difference matters once you're past your second investment property.
Rate spreads run about 1% higher on DSCR, but underwriting takes 2-3 weeks instead of 5-6. Self-employed borrowers save months of documentation hassles. Conventional wins on price; DSCR wins on speed and portfolio scaling.
Pick conventional if you're a W-2 earner buying your first or second rental. Your income qualifies easily and you'll lock a better rate. This works until your DTI maxes out—usually around three financed properties.
Choose DSCR when tax returns don't reflect your real income, you own multiple rentals, or you're self-employed with aggressive deductions. Lincoln's rental market supports the math—most properties near Twelve Bridges cash flow enough to hit the 1.0 DSCR threshold.
No. DSCR loans only work for investment properties. You need conventional, FHA, or another owner-occupied loan for a primary home.
DSCR typically closes in 2-3 weeks versus 4-6 weeks for conventional. Less documentation means faster underwriting.
Yes. Both conventional and DSCR require full appraisals. The DSCR appraisal must include a rental income analysis.
Yes, but you'll restart underwriting with a different lender. We handle both, so switching is cleaner than starting over elsewhere.
Most DSCR lenders want 680+ for best pricing. Conventional investment loans start at 620 but rate improves significantly above 740.