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in Montclair, CA
These two loans serve very different borrowers. Conventional is for buyers who earn W-2 or self-employment income and plan to occupy or lightly invest.
DSCR is built for investors. The property's rental income qualifies you — not your tax returns or pay stubs.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You need verifiable income, solid credit, and typically 3–20% down depending on the deal.
Rates are competitive, especially with strong credit. These loans work well for primary homes and small rentals where your income can support the payment.
DSCR loans skip personal income entirely. Lenders look at whether the property's rent covers the mortgage — that ratio is your qualification.
A DSCR of 1.0 means rent equals the payment. Most lenders want 1.1 or higher. Some will go below 1.0 with a larger down payment.
HousingWire flagged the 30-year fixed hitting 6.57% with applications dropping sharply — that spread matters differently for each loan here.
Conventional borrowers feel that rate directly on their monthly payment. DSCR borrowers care more about whether rent still covers that rate.
Conventional has lower rates but harder income docs. DSCR has higher rates but no income verification — that tradeoff defines which loan fits.
If you're buying a home to live in or have clean W-2 income, conventional wins. Lower rate, lower down payment, easier monthly budget.
If you're building a rental portfolio in Montclair and don't want lenders dissecting your personal returns, DSCR is the right tool.
Many investors use both. Conventional for their first rental or two, then DSCR when scaling past what traditional lenders will approve.
No. DSCR is investment property only. For a primary residence, conventional is the right path.
Most DSCR lenders want 680 or higher. Some go down to 660 with a larger down payment. Rates vary by borrower profile and market conditions.
Conventional rates run lower. DSCR lenders price in more risk since they skip income verification. Rates vary by borrower profile and market conditions.
Yes. DSCR works well on 2–4 unit properties. The combined rent just needs to meet the coverage ratio the lender requires.
No, but DSCR lenders do allow LLC borrowing — conventional loans typically do not. Many portfolio investors prefer the LLC structure for liability reasons.
SRK CAPITAL shops across 200+ wholesale lenders. We match your property's cash flow and your credit profile to the program that pencils out.