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in El Cajon, CA
These two loans serve different borrowers. Conventional is for buyers who qualify on personal income. DSCR is for investors who qualify on rental income.
El Cajon has solid rental demand. That makes DSCR worth a serious look for investors. But owner-occupants will almost always go conventional.
Conventional loans require a 620 credit score minimum. Most lenders want to see two years of W-2s or tax returns. Your debt-to-income ratio matters here.
Rates are competitive for strong-profile borrowers. Put 20% down and you skip mortgage insurance entirely. That saves real money over the life of the loan.
DSCR loans skip personal income docs entirely. Lenders look at the property's rent versus its monthly payment. A DSCR of 1.0 means rent covers the payment.
Most lenders want a DSCR of 1.1 or higher. Credit requirements typically start around 620-640. Down payments usually run 20-25%.
Conventional underwriting digs into your personal finances. DSCR underwriting focuses entirely on the property's cash flow. That distinction changes everything about who qualifies.
HousingWire flagged the 30-year fixed hitting 6.57% with applications falling sharply. For DSCR investors, that rate environment tightens cash flow math. Run your DSCR numbers carefully before locking.
Buying a home to live in? Conventional is your path. It offers lower rates and broader program options for primary residences.
Buying a rental property in El Cajon and you're self-employed or already carry multiple mortgages? DSCR removes personal income as the obstacle. It's built for that exact situation.
No. DSCR loans are for investment properties only. Use a conventional loan for a home you plan to live in.
Conventional rates run lower. DSCR lenders price in more risk since income verification is limited. Rates vary by borrower profile and market conditions.
No personal income docs are required. Lenders verify the property's rental income instead — usually via a lease or rent schedule.
Most DSCR lenders want at least 620-640. A stronger score gets you better pricing and terms.
Yes, conventional loans work for investment properties too. But you must qualify on personal income and expect higher rates than owner-occupant pricing.
Divide monthly rent by the total monthly loan payment. A result of 1.0 means break-even. Most lenders want 1.1 or above.