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in Chula Vista, CA
Conventional loans and DSCR loans serve different borrowers in Chula Vista. One requires you to prove income through W-2s or tax returns. The other qualifies you based purely on rental cash flow.
Most owner-occupants use conventional financing. Investors who want to scale without income documentation use DSCR. Your employment situation and investment goals determine which path makes sense.
Conventional loans require 620+ credit and debt-to-income ratios below 50%. You document income with pay stubs, W-2s, or tax returns for the past two years.
Rates run lowest in the market right now. You put down 5% for owner-occupied homes, 15-25% for investment properties. PMI applies under 20% down but drops off once you hit that equity mark.
Loan limits in San Diego County hit $1,149,825 for single-family homes in 2024. Above that you need jumbo financing with stricter requirements and higher rates.
DSCR loans skip personal income verification entirely. Lenders approve based on the property's rental income divided by the monthly mortgage payment. A ratio above 1.0 means the rent covers the debt.
You need 20-25% down minimum. Credit requirements start at 660 but expect better pricing above 700. No tax returns, no pay stubs, no employment verification.
Rates run 0.5-1.5% higher than conventional loans. You pay for the flexibility to qualify without income docs. Most investors use DSCR when their tax returns show losses or they own multiple properties.
Conventional loans qualify you based on personal income. DSCR loans qualify the property based on rent. That's the core split. If you show strong W-2 income, conventional wins on rate. If you're self-employed with write-offs or scaling a portfolio, DSCR opens doors conventional lenders close.
Down payments differ by two factors: occupancy and loan type. Conventional allows 5% down if you're moving in. DSCR requires 20-25% regardless. Investment properties need 15-25% down on conventional, similar to DSCR minimums.
Rate差 matters over time. A $500K loan at 6.5% costs $3,160 monthly. The same loan at 7.5% costs $3,496. That's $336 per month or $4,032 annually. Run the numbers over your planned hold period to see if DSCR's flexibility justifies the cost.
Use conventional if you're buying a primary residence or show clean W-2 income with low DTI. You'll get the best rate and lowest down payment options. Most Chula Vista first-time buyers and traditional employees fit here.
Choose DSCR if you're an investor who can't or won't document personal income. Self-employed borrowers with heavy deductions, portfolio landlords adding properties, or anyone prioritizing privacy over rate. The property has to cash flow above 1.0 DSCR or you won't qualify.
We see both loan types close regularly in Chula Vista. Single-family rentals near Eastlake or Otay Ranch work well for DSCR if rents cover the numbers. Owner-occupants in newer developments stick with conventional for the rate advantage.
No. DSCR loans only finance investment properties. You need rental income to qualify, so owner-occupied homes don't work.
Most lenders require 1.0 or higher, meaning rent covers the full mortgage payment. Some allow 0.75 with higher down payments and credit scores.
Yes. Conventional rates run 0.5-1.5% lower because of lower risk and government-sponsored backing. Rates vary by borrower profile and market conditions.
No. Investment properties require 20% down to skip PMI. Owner-occupied conventional loans allow PMI with less than 20% down.
DSCR loans often close quicker because there's no income verification. Conventional loans require employment and income documentation that adds time.