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in San Juan Bautista, CA
San Juan Bautista investors face a choice: qualify on your income or the property's rental income. Conventional loans demand W-2s and tax returns. DSCR loans ignore your personal finances entirely.
With rates near 6% as of February 2026, both options sit at four-year lows. The right choice depends on whether you're buying your first rental or your tenth.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You need documented income, 620+ credit, and typically 15-25% down for investment properties. Rates start lower than most investor products.
San Juan Bautista investors use conventional financing when their W-2 income supports the debt. You're limited to 10 financed properties across your portfolio. Appraisals run smoother since lenders see these loans daily.
DSCR loans qualify you on rental income alone. No tax returns. No pay stubs. The property's rent must cover 1.0-1.25 times the mortgage payment. You can close under an LLC from day one.
San Benito County investors choose DSCR when they're self-employed, own multiple properties, or write off too much income. Credit minimums sit at 660-680. Down payments start at 20-25% depending on the property's cash flow.
Rates separate fast. Conventional pricing runs 0.5-1.5% lower than DSCR in most scenarios. DSCR compensates with zero income documentation and no property count limits. You can finance 20 rentals if each cash flows.
Approval speed differs too. Conventional underwriting takes 3-4 weeks with full income review. DSCR closes in 2-3 weeks since lenders only verify rent comps and property condition. San Juan Bautista's smaller rental inventory means rent comps require extra diligence on DSCR deals.
Choose conventional if you're a W-2 earner buying your first few rentals. The rate savings compound over 30 years. You'll accept the income verification hassle for better pricing and simpler appraisals.
Choose DSCR if you're self-employed, own multiple properties, or can't document traditional income. The rate premium buys flexibility. San Juan Bautista deals work when rent covers the mortgage — verify local rent comps before you make an offer.
No. DSCR loans only work for investment properties. You need documented income for primary homes.
Conventional requires 620 minimum. DSCR lenders want 660-680 depending on down payment and property cash flow.
Similar ranges. Conventional needs 15-25% down for rentals. DSCR starts at 20-25% based on debt coverage ratio.
DSCR typically closes in 2-3 weeks. Conventional takes 3-4 weeks due to full income verification requirements.
Yes. Investors refinance to DSCR when they want to stop documenting income or exceed the 10-property conventional limit.