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in Loyalton, CA
Loyalton sits in Sierra County where the real estate game splits into two camps. You're either buying a primary residence or chasing rental income from out-of-town investors.
Conventional loans dominate owner-occupied purchases. DSCR loans exist for one reason: income-producing properties where your W-2 doesn't matter.
Conventional loans use your income, credit, and assets to qualify you. Rates vary by borrower profile and market conditions, but you'll typically need 620+ credit and prove stable employment.
These work for primary homes, second homes, and investment properties up to four units. Down payments start at 3% for first-time buyers, 5% for repeats, 15-20% for investment properties.
DSCR loans ignore your tax returns and pay stubs. Lenders only care if the rental income covers the mortgage payment plus taxes and insurance.
You need a DSCR ratio above 1.0, meaning rent exceeds the full housing payment. Most lenders want 20-25% down and 660+ credit, with no upper limit on how many properties you own.
Conventional loans qualify you as a person. DSCR loans qualify the property's cash flow. That's the entire ballgame.
Rates on DSCR loans run 0.5-1.5% higher than conventional because you're not verifying income. Trade-off is speed and privacy—no two years of tax returns, no employment letters, no explanation for deposits.
Buying a house to live in? Conventional wins every time. Lower rates, smaller down payment options, and you're likely W-2 employed anyway.
Buying rental property as a self-employed investor or portfolio builder? DSCR makes sense if the property cash flows. You skip the income documentation headache and scale faster.
No. DSCR loans only work for investment properties. You need rental income to qualify, which means you can't live there.
Conventional loans offer lower rates for qualified borrowers. DSCR rates run 0.5-1.5% higher because lenders don't verify your income.
Yes. DSCR loans typically require 20-25% down. Conventional allows 3-5% down for owner-occupied homes, 15-20% for investment properties.
Conventional loans start at 620 credit. DSCR lenders usually want 660 or higher, though some go to 640.
Yes, but you'll provide two years of tax returns. DSCR loans skip that entirely if the property's rent covers the payment.
They divide monthly rental income by the full housing payment. A ratio above 1.0 means rent exceeds costs, which qualifies you.