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in Weed, CA
Weed sits at the base of Mount Shasta with a rental market driven by outdoor recreation and ski season tourism. Conventional loans work for primary homes and second homes with standard income verification.
DSCR loans qualify you based on rental income alone—no tax returns required. That matters if you're buying investment property in Weed's seasonal rental market or you're self-employed with fluctuating documented income.
Conventional loans require 3-5% down for primary homes, 10-15% for investment properties. You'll need credit above 620, verifiable employment, and debt-to-income ratios under 50%.
These loans offer the lowest rates when you have clean W-2 income and strong credit. They're the default choice for owner-occupied homes and vacation properties you'll use personally.
DSCR loans ignore your personal income entirely. Lenders calculate the property's monthly rent divided by the mortgage payment—that's your debt service coverage ratio.
You need 20-25% down and credit above 660. No tax returns, no employment verification, no explanation of business write-offs that tank your qualifying income.
The income verification split defines everything. Conventional lenders add up your W-2 wages, subtract monthly debts, and calculate what you can afford. DSCR lenders look at one thing: does the rent cover the mortgage payment?
Rates vary by borrower profile and market conditions. Conventional loans typically price 0.5-1.5% lower because they carry less risk. DSCR loans compensate for no-income-verification with higher rates and larger down payments.
Use conventional if you're buying a primary home or second home in Weed with steady W-2 income. You'll get better rates and lower down payment requirements.
Use DSCR if you're buying rental property and your tax returns don't reflect your cash flow—common with business owners who maximize deductions. Also the right fit if you're scaling a rental portfolio and your DTI is maxed out on conventional loans.
Yes, but you need 15% down and the rental income only counts if you have a lease in place. Your personal DTI must still qualify.
Most lenders require 1.0 or higher—monthly rent equals or exceeds the mortgage payment. Some allow 0.75 DSCR with larger down payments.
Yes. Lenders use market rent analysis or your booking history to calculate income. Seasonal fluctuations are factored into the underwriting.
DSCR often closes quicker—no employment verification or tax return reviews. Conventional loans take longer due to income documentation requirements.
Yes. Investors switch to DSCR to pull equity or remove personal income from the equation when scaling their portfolios.