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in Rio Vista, CA
Rio Vista's rental market attracts both owner-occupants and investors, but these two groups need different loan structures. Conventional loans are built for W-2 earners buying a primary residence or second home.
DSCR loans ignore your tax returns entirely and qualify you on rental income alone. If you're self-employed or building a portfolio, understanding this split determines whether you can buy at all.
Conventional loans require documented income, stable employment, and at least 620 credit. You'll need 3% down for a primary residence, 10% for a second home, and 15-25% for an investment property.
These loans offer the lowest rates in the market — typically 0.5-1% below DSCR pricing. Lenders verify your W-2s, paystubs, and tax returns. Debt-to-income ratio can't exceed 50% in most cases.
If you're buying a primary home in Rio Vista with steady employment, conventional financing beats every other option on rate and cost. The trade-off is strict documentation and income limits based on your job.
DSCR loans qualify you based on the property's rental income, not your paystubs. Lenders calculate the monthly rent divided by the mortgage payment — if that ratio hits 1.0 or higher, you're approved.
You'll need 20-25% down and 660+ credit. No W-2s, no tax returns, no employment verification. Rates run 1-2% higher than conventional, but self-employed borrowers and portfolio investors can close deals that traditional lenders reject.
Rio Vista's rental properties near the delta attract vacation renters and long-term tenants. If the property cash flows and you have the down payment, DSCR lenders don't care about your personal income or job.
Conventional loans require full documentation of your personal income. DSCR loans ignore your income entirely and focus on whether the property generates enough rent to cover the mortgage payment.
Rate difference matters. Conventional loans price 0.5-1.5% lower, which saves $150-300 per month on a $500K loan. But that advantage disappears if your tax returns show write-offs that tank your qualifying income.
Down payment requirements split at the investment property line. Conventional needs 15-25% for rentals. DSCR always requires 20-25%, but you can close multiple properties in a year without hitting loan count limits.
Choose conventional if you're buying a primary residence or you're a W-2 earner with clean tax returns. The rate savings alone justify the paperwork hassle, and you'll pay thousands less over the loan term.
Go DSCR if you're self-employed, own multiple rentals already, or your tax returns show aggressive write-offs. Rio Vista investment properties near the waterfront often rent for $2,500-3,500/month — if the numbers work, DSCR gets you approved in days.
Most Rio Vista buyers use conventional for their own home and DSCR for rental properties. You're not locked into one strategy. The property type and your income situation determine which loan fits.
No. DSCR loans only finance investment properties that generate rental income. For a primary residence, you need conventional, FHA, or VA financing.
Conventional requires 620 minimum, though 680+ gets better rates. DSCR lenders typically want 660 or higher to approve the loan.
Monthly rent must equal or exceed the full mortgage payment (PITIA). Most lenders want a 1.0 DSCR ratio minimum, though some accept 0.75 with larger down payments.
DSCR loans close in 10-15 days because there's no income verification. Conventional loans take 20-30 days due to employment and income documentation requirements.
Yes. Many investors refinance from conventional to DSCR when converting a primary home to a rental. Rates vary by borrower profile and market conditions.