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in Mountain View, CA
Mountain View attracts both homebuyers and rental investors. These two buyer profiles need very different loan products.
Conventional loans work for W-2 earners buying a primary or second home. DSCR loans are built for investors whose rental income does the qualifying.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. Lenders look at your income, credit, and debt-to-income ratio.
You can put as little as 3% down. Avoid PMI by hitting 20% equity. Rates are competitive for borrowers with strong credit.
DSCR loans skip your tax returns entirely. Lenders look at the property's rent versus its monthly mortgage payment.
A DSCR above 1.0 means the rent covers the debt. Most lenders want 1.1 or higher. Your personal income is not the deciding factor.
The biggest difference is how you qualify. Conventional lending looks at you. DSCR lending looks at the property.
HousingWire flagged the 30-year fixed rate at 6.57% — that rate applies to conventional borrowers. DSCR rates run higher, often 1-2 points above conventional. Rates vary by borrower profile and market conditions.
Conventional loans allow primary residences, second homes, and investment properties. DSCR is investment-only — you cannot use it to buy a home you plan to live in.
Buying a home in Mountain View to live in? Conventional is your path. Better rates, lower down payment options, and standard underwriting.
Buying a rental property and your tax returns don't show enough income? DSCR gets deals done that conventional can't touch. Many Silicon Valley investors run income through businesses — DSCR is built for that.
Some investors use both. Conventional for properties that qualify easily, DSCR when personal income creates a wall.
No. DSCR loans are for investment properties only. You need a conventional or government-backed loan for a home you'll occupy.
Conventional typically requires 620 minimum. DSCR lenders usually want 620-680 depending on the deal and down payment.
Not necessarily harder — just different. DSCR ignores your personal income. If the rent covers the payment, the loan can work.
Conventional rates are lower. DSCR carries a premium for the flexible qualifying. Rates vary by borrower profile and market conditions.
Most DSCR lenders require 20-25% down. Conventional investment properties also need at least 15-20% down.
Yes, if it's classified as an investment property at purchase. Renting out a primary home without lender disclosure can violate loan terms.