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in San Francisco, CA
San Francisco's median household income sits at $141,446 annually, yet the conforming loan limit for 2026 is $1,249,125. That gap matters when you're choosing between a conventional loan and a DSCR loan.
Conventional loans are the standard path for owner-occupants with W-2 income and solid credit. DSCR loans exist for investors and self-employed buyers whose income doesn't fit a traditional paycheck.
Conventional loans require a minimum credit score of 620, though most lenders prefer 680+. Down payments start at 3% for owner-occupants, though 20% eliminates private mortgage insurance entirely.
Your debt-to-income ratio caps at 43% to 50% depending on the lender and your reserves. At the county median income of $141,446, that translates to roughly $5,100 to $5,900 in total monthly debt before the new mortgage.
DSCR loans qualify you based on the property's income, not your personal income. The acronym stands for Debt Service Coverage Ratio—lenders want to see that rental income covers the mortgage payment and other debts.
DSCR loans work for investors buying rental properties, owner-occupants with rental units, and self-employed buyers whose business income is hard to document. San Francisco's $1,249,125 conforming limit applies here too.
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 San Francisco.
San Francisco's median household income sits at $141,446 annually, yet the conforming loan limit for 2026 is $1,249,125. That gap matters when you're choosing between a conventional loan and a DSCR loan.
Conventional loans are the standard path for owner-occupants with W-2 income and solid credit. DSCR loans exist for investors and self-employed buyers whose income doesn't fit a traditional paycheck.
Conventional loans require a minimum credit score of 620, though most lenders prefer 680+. Down payments start at 3% for owner-occupants, though 20% eliminates private mortgage insurance entirely.
Conventional loans ask "Can you afford this?" DSCR loans ask "Does the property pay for itself?" That's the fundamental split. Conventional requires 3% down minimum; DSCR starts at 20%.
The conforming limit of $1,249,125 applies to both in San Francisco. Conventional loans close faster—30 to 45 days versus 45 to 60 for DSCR. DSCR loans don't penalize you for having multiple properties or complex income sources.
Choose conventional if you're buying a home to live in and your income comes from a W-2 job or clear self-employment returns. You earn above the county median of $141,446, have a credit score of 680+, and can document your income on recent tax returns.
Choose DSCR if you're buying an investment property or adding a rental unit to your primary residence. DSCR also fits when your income is primarily self-employment that's hard to document.
Yes, but only if the property generates rental income. If you're buying a single-family home to occupy yourself with no rental component, conventional is your path. DSCR requires documented property income to qualify.
Minimum 620, but most lenders prefer 680 or higher. At 680+, you'll access better rates and easier approval. Below 680, expect higher rates and stricter documentation.
20% down eliminates PMI entirely. Below 20%, you'll pay mortgage insurance until you hit 80% loan-to-value. At 3% down, PMI adds roughly $200 to $400 monthly depending on the loan amount.
DSCR underwriting requires lease agreements, rent rolls, and property appraisals to verify income. Conventional uses your tax returns and employment verification, which move faster. The extra 15 days accounts for property income documentation.
Yes. The 2026 conforming limit of $1,249,125 applies to DSCR loans in San Francisco County. You'll need 20% to 25% down, so roughly $250,000 to $312,000 in cash reserves.