Loading
in San Juan Bautista, CA
San Juan Bautista's small-town rental market creates different needs for owner-occupants versus investors. Conventional loans work for primary homes and second properties, while DSCR loans focus purely on rental income.
Your employment situation and property plans determine which path makes sense. W-2 earners buying a home usually choose conventional, while investors with multiple properties lean toward DSCR.
Conventional loans need documented income, 620+ credit, and typically 5-20% down. Lenders review tax returns, pay stubs, and employment history to confirm you can afford the payment.
These loans offer the lowest rates when you have strong credit and stable income. You can buy a primary home, second home, or investment property with up to 10 financed properties total.
DSCR loans skip personal income documentation entirely. Approval depends on whether the property's rent covers the mortgage payment by enough margin, usually 1.0x to 1.25x coverage.
Expect 20-25% down, 660+ credit, and rates 0.5-1.5% higher than conventional. These work for self-employed investors, landlords with complex tax returns, or anyone adding properties quickly.
Conventional loans examine your personal finances closely and offer better rates. DSCR loans ignore your income and focus only on whether the property pays for itself.
Down payments differ significantly—5% conventional for primary homes versus 20-25% for DSCR. Rate spreads run 0.5-1.5% higher on DSCR, but approval speed often beats conventional when your tax returns show low income.
Choose conventional if you're buying a home to live in or have clean W-2 income with good credit. The rate savings over 30 years usually justify the paperwork hassle.
Pick DSCR when you're building a rental portfolio, write off heavy deductions, or can't document income traditionally. San Juan Bautista's rental market supports both strategies—match the loan to your tax situation and property goals.
No. DSCR loans only finance investment properties with rental income. Primary homes require conventional, FHA, or other owner-occupied financing.
DSCR often closes quicker because you skip income documentation. Conventional takes longer when lenders request multiple pay stubs, tax returns, and employment verification letters.
Yes. Conventional finances 1-4 units if you occupy one unit. DSCR finances 1-4 unit rentals without occupancy requirements.
Rates vary by borrower profile and market conditions. Expect DSCR rates to run 0.5-1.5% above conventional for similar credit and down payment scenarios.
Yes, through refinancing. Many San Juan Bautista landlords start with conventional then refinance to DSCR when they convert a primary home to rental or need cash-out.