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in Yreka, CA
Yreka buyers face a choice between conventional financing and DSCR investor loans. Your income type and property use determine which option makes sense.
Conventional loans use your W-2 or tax returns for approval. DSCR loans qualify you on rental income alone, which matters for investors and self-employed borrowers in Siskiyou County.
Conventional loans offer the lowest rates for primary homes and strong credit profiles. You need 620+ credit and standard income docs like paystubs and tax returns.
Most Yreka buyers use conventional financing for owner-occupied properties. You can put down as little as 3% on a primary home, though investment properties require 15-20% down.
Lenders verify your debt-to-income ratio stays under 50%. Your job history, credit score, and savings all factor into approval. Rates vary by borrower profile and market conditions.
DSCR loans skip personal income verification entirely. Lenders approve based on whether the rental income covers the mortgage payment plus taxes and insurance.
Siskiyou County investors use DSCR when they can't document income traditionally. You need 20-25% down and the property must generate enough rent to cover the debt.
The ratio divides monthly rent by the full PITI payment. Most lenders want 1.0 or higher, meaning rent equals or exceeds the payment. Rates run 0.5-1.5% above conventional.
Conventional loans verify your income with tax returns and paystubs. DSCR loans ignore your personal income and look only at rent rolls or appraisal market rents.
Down payments differ sharply. Conventional allows 3% down for primary homes, while DSCR requires 20-25% minimum since these are investor products only.
Rates on conventional loans beat DSCR by a full point or more for borrowers with good credit. You pay a premium for the flexibility to skip income documentation.
DSCR works when you have strong rental income but complex tax returns. Conventional works when you have stable W-2 income and lower down payment funds.
Choose conventional for owner-occupied homes in Yreka or when you have clean W-2 income. The lower rates and down payments make it the default choice for most buyers.
Choose DSCR for rental properties when your tax returns show low income due to write-offs. Self-employed investors and those buying multiple properties use DSCR to avoid income caps.
Rental property buyers with strong personal income often still prefer conventional for the rate savings. DSCR makes sense when documentation is the roadblock, not loan size.
No. DSCR loans only finance investment properties that generate rental income. You need conventional or FHA for owner-occupied homes.
Conventional loans offer rates 0.5-1.5% lower than DSCR. Rates vary by borrower profile and market conditions.
No. DSCR lenders qualify you on rental income from the property. They skip personal income verification entirely.
Conventional requires 620 minimum. DSCR typically needs 640-680 depending on the lender and down payment.
Yes on both. Put down 20% on conventional or meet DSCR minimums to skip mortgage insurance on either product.