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in Tulelake, CA
Tulelake sits in California's far north, where agriculture and rural property define the market. The loan you choose depends on whether you're buying a home or an investment property.
Conventional loans work for owner-occupied homes and qualify you on W-2 income. DSCR loans ignore your tax returns and qualify you on rental income alone.
Conventional loans are backed by Fannie Mae or Freddie Mac. They offer the lowest rates if you have strong credit and verifiable income from W-2 jobs or tax returns.
You'll need at least 3% down for a primary residence, 15% for a second home, and 20% for an investment property. Credit scores below 620 won't qualify.
DSCR loans qualify you based on the property's rental income, not your W-2 or tax returns. The lender calculates a debt service coverage ratio by dividing monthly rent by the mortgage payment.
Most lenders want a DSCR of 1.0 or higher, meaning rent covers the full payment. You'll need 20-25% down and a 660+ credit score in most cases.
The biggest split is income qualification. Conventional loans require two years of tax returns and consistent employment. DSCR loans skip all that and look only at what the property can earn.
Rates run 0.5-1.5% higher on DSCR loans because they're non-QM products with more risk. But if you're self-employed with write-offs that tank your tax returns, that rate premium is worth it.
Use conventional financing if you're buying a primary residence in Tulelake or have clean W-2 income and strong credit. The rates are better and down payment requirements are lower.
Choose DSCR if you're buying rental property and don't want to show tax returns. This works for investors with multiple properties, self-employed borrowers, or anyone whose rental income exceeds their documented income.
No. DSCR loans are for investment properties only. You must rent the property out to generate the income used for qualification.
Conventional loans require 620 minimum. DSCR loans typically need 660 or higher, though some programs go as low as 640.
Conventional wins for owner-occupied homes at 3% down. DSCR loans require 20-25% down because they're investment-only products.
Yes, expect rates 0.5-1.5% higher than conventional. The trade-off is no income verification, which matters if your tax returns show low income.
Yes. Most lenders accept a rent schedule from a licensed appraiser showing market rent for similar properties in the area.