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Coronado's market demands flexibility. Conventional loans suit owner-occupants with steady W-2 income. DSCR loans serve investors and self-employed buyers who rely on rental income or business cash flow.
San Diego County's median household income is $102,285. The 2026 conforming limit is $1,104,000. Both programs compete for the same high-value properties, but they qualify buyers on different financial foundations.
Conventional at 6.25% works for primary-residence buyers with documented employment. PMI cancels at 80% LTV, so putting 20% down eliminates that cost entirely.
Fannie Mae and Freddie Mac back conventional loans. Lenders typically want a 740+ FICO score and 5% to 20% down.
DSCR loans qualify on rental income instead of personal W-2s. The debt-service-coverage ratio measures how much monthly rent covers the loan payment.
DSCR lenders pull bank statements and rental agreements, not tax returns. Down payments often run 20% to 25% because the lender relies on property cash flow.
Local decision guide
Use this comparison to weigh Conventional Loans and DSCR Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Coronado.
Coronado's market demands flexibility. Conventional loans suit owner-occupants with steady W-2 income. DSCR loans serve investors and self-employed buyers who rely on rental income or business cash flow.
San Diego County's median household income is $102,285. The 2026 conforming limit is $1,104,000. Both programs compete for the same high-value properties, but they qualify buyers on different financial foundations.
Conventional at 6.25% works for primary-residence buyers with documented employment. PMI cancels at 80% LTV, so putting 20% down eliminates that cost entirely.
Conventional requires W-2 employment and owner-occupancy. DSCR ignores your job title and lets the property's rental income carry the loan.
Conventional rates run lower because the lender has your personal income as backup. DSCR rates are higher because the lender depends entirely on tenant rent.
Choose conventional if you work a salaried job and plan to live in the home. Your W-2s and tax returns prove income.
Choose DSCR if you're self-employed, a real estate investor, or buying a rental property. Your rental income or business bank statements replace W-2s.
No. Conventional loans require W-2 employment income. DSCR loans are built for rental income.
$4,618 in principal and interest. This assumes 740 FICO, 80% LTV, and a 30-year term.
No. Conventional accepts 5% down, but PMI applies until 80% LTV. Twenty percent down skips PMI.
DSCR lenders often accept 680 FICO or higher. Conventional typically wants 740+. DSCR is more flexible on credit.
Conventional typically closes in 21 to 30 days. DSCR takes 30 to 45 days. Both depend on appraisal speed.
in Coronado, CA