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in Hollister, CA
Hollister investors face a choice: traditional conventional financing or rental income-based DSCR loans. Conventional loans offer lower rates but require W-2 income and debt-to-income approval.
DSCR loans skip personal income verification entirely. They qualify you based on whether the rental property cash flows, which matters in San Benito County's investor market.
Conventional loans deliver the lowest rates available in Hollister. You need 620+ credit, verifiable income through tax returns or W-2s, and typically 15-25% down for investment properties.
Debt-to-income ratios matter heavily here. Lenders want to see your total monthly debts stay below 43-50% of gross income, which can disqualify high earners with existing rental portfolios.
DSCR loans ignore your tax returns completely. We calculate the property's projected rent divided by its mortgage payment, taxes, insurance, and HOA fees—that ratio needs to hit 1.0 or higher.
Rates run 0.75-1.5% higher than conventional, but you skip income docs and DTI calculations. Credit minimums start at 680, and you need 20-25% down for most Hollister properties.
The rate gap matters: conventional might price at 6.5% while DSCR sits at 7.5-8% for the same Hollister property. That's $200-300 more monthly on a $500K loan.
Income verification is the dividing line. Conventional requires two years of tax returns, W-2s, and full DTI calculations. DSCR needs a signed lease or rent appraisal—nothing about your personal finances.
Go conventional if you're W-2 employed with clean tax returns and room in your debt ratios. The rate savings compound over time, especially on San Benito County holds you plan to keep long-term.
Choose DSCR if you're self-employed with write-offs, own multiple rentals already, or can't document traditional income. You pay more upfront but qualify faster without the DTI maze.
No. DSCR loans fund investment properties only—you cannot occupy the home as your primary residence or second home.
DSCR loans typically close 3-5 days faster since we skip income verification and employment checks entirely.
Yes. Both conventional and DSCR loans need full appraisals on Hollister properties to confirm value and condition.
Absolutely. We refinance both directions depending on whether you need better rates or want to eliminate income verification requirements.
Conventional wins here—you can go as low as 15% down on some investment properties versus DSCR's typical 20-25% minimum.