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in Portola, CA
Portola's rental market creates two distinct paths for financing. Conventional loans work best for owner-occupied homes and traditional borrowers with W-2 income.
DSCR loans ignore your tax returns entirely. They qualify you based on what the property earns, making them powerful tools for investors who show low personal income.
Conventional loans offer the lowest rates in Portola if you have solid credit and documented income. You'll need 620+ credit, full tax returns, and 3-25% down depending on property type.
These loans cap at 10 financed properties per borrower. Rates vary by credit score, down payment, and whether you're buying a primary home or investment property.
DSCR loans calculate approval using one number: monthly rent divided by monthly debt. If that ratio hits 1.0 or higher, you can qualify without showing tax returns or pay stubs.
These loans work for investors with multiple properties who write off most income. You'll pay 0.5-1.5% more than conventional rates, but there's no property limit.
Conventional loans verify your W-2s, tax returns, and bank statements. DSCR loans skip all that and pull a rent schedule or appraisal instead.
Rate difference runs 0.5-1.5% in most scenarios. A conventional loan at 7% might price at 7.75% as a DSCR, but you trade that cost for zero tax return hassles. Rates vary by borrower profile and market conditions.
Choose conventional if you're buying a primary home in Portola or have clean W-2 income with strong tax returns. The rate savings add up fast over 30 years.
Go DSCR if you own multiple rentals, show low taxable income, or need to scale past 10 properties. You'll pay more upfront but avoid documentation nightmares that kill conventional deals.
Yes, if you have signed leases or comparable rent data. Short-term rental income works but requires 12-24 months of history and market rent analysis.
DSCR loans often close 5-7 days faster since there's no income verification. Conventional loans need full underwriting of tax returns and employment history.
Conventional covers 2-4 units with 15-25% down. DSCR handles any investment property size if the rent covers 100% of the mortgage payment.
Conventional requires 620 minimum. DSCR lenders want 660-680 depending on loan amount and down payment size.
Yes, this works well when you've accumulated multiple properties. DSCR cash-out refinances pull equity without tax return review.