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in Etna, CA
Etna sits in rural Siskiyou County where real estate plays by different rules than California metros. Conventional loans dominate primary residence purchases, while DSCR loans serve investors who want rental properties without personal income verification.
The choice between these programs depends entirely on your goal. Owner-occupants typically need conventional financing, while rental property investors often benefit from DSCR's income-based qualification model.
Conventional loans require full income documentation including tax returns, W-2s, and pay stubs. Lenders verify your debt-to-income ratio stays below 43-50% depending on credit profile and down payment.
You need 620+ credit for most programs, though 740+ unlocks better rates. Down payments start at 3% for primary homes, 10% for second homes, and 15-25% for investment properties with conventional financing.
These loans offer the lowest rates available because Fannie Mae and Freddie Mac back the risk. You'll pay PMI if you put down less than 20%, but can remove it once you hit 20% equity.
DSCR loans qualify you based on rental income, not your W-2 or tax returns. Lenders calculate the property's monthly rent divided by the mortgage payment—this ratio needs to hit 1.0 or higher for most programs.
You need 620-640 credit minimum and 20-25% down. No income verification means self-employed borrowers and investors with complex tax returns skip the documentation headache entirely.
Rates run 0.5-1.5% higher than conventional because these are portfolio loans without agency backing. You're paying for underwriting flexibility and privacy around personal finances.
Conventional loans scrutinize your personal finances—every bank account, every debt, every income source. DSCR loans ignore all that and focus solely on whether the rental income covers the mortgage payment plus taxes and insurance.
Rate difference matters on Etna properties. A $300,000 loan at 6.5% conventional costs $1,896 monthly versus $2,027 at 7.5% DSCR—that's $131 more per month or $47,000 over 30 years.
Conventional allows owner-occupancy with low down payments. DSCR requires investment-only use with 20%+ down, no exceptions. You can't live in a DSCR-financed property as your primary residence.
Choose conventional if you're buying a home to live in or have straightforward W-2 income and clean tax returns. The rate savings alone justify the documentation requirements for most primary residence buyers in Etna.
Choose DSCR if you're acquiring a rental property and want to avoid personal income verification. This works especially well for self-employed buyers, retirees living on assets, or investors buying multiple properties who don't want each purchase affecting their debt-to-income ratio.
Rural Siskiyou County properties sometimes appraise conservatively, which affects both programs. DSCR lenders may require higher rent coverage ratios in smaller markets, so run the numbers before committing to either strategy.
No. DSCR loans require investment property use only. If you'll occupy it at all, you need conventional or another owner-occupant program.
Yes, but you'll need to qualify with personal income and accept higher down payment requirements. Conventional investment property loans require 15-25% down.
They use a market rent appraisal or existing lease. That monthly rent divided by the full mortgage payment must hit 1.0 or higher to qualify.
DSCR often closes faster because there's no income verification. Conventional loans require employment checks and document review that add 5-10 days.
Yes. Investors often refinance to DSCR when buying additional properties to free up debt-to-income capacity for the next purchase.