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in Rohnert Park, CA
Conventional loans and DSCR loans serve completely different borrowers in Rohnert Park. One works for people buying a home to live in. The other ignores your W-2 entirely and looks at rental income instead.
Most buyers start with conventional financing because the rates are lower and down payments can be as small as 3%. Investors with multiple properties or complex tax returns skip straight to DSCR because it's faster and doesn't require two years of tax returns.
Conventional loans are the default for anyone buying a primary residence or second home in Rohnert Park. You need a 620 credit score minimum, verifiable income through W-2s or tax returns, and steady employment history.
Down payments start at 3% for first-time buyers and go up from there. Put down less than 20% and you'll pay PMI until you hit 20% equity. The underwriter reviews your entire financial picture—income, debts, assets, credit history—before approval.
DSCR loans qualify you based on the property's rental income, not your paycheck. The lender calculates the rent divided by the mortgage payment (DSCR ratio). A ratio above 1.0 means the property pays for itself. Most lenders want 1.1 or higher.
You need 20-25% down, 660+ credit, and the property must be an investment rental. No tax returns. No employment verification. The property either cash flows or it doesn't—that's the entire underwriting process.
Conventional loans cost less upfront and long-term if you're living in the property. Rates run 0.5-1% lower than DSCR, and you can put down as little as 3%. DSCR loans start at 20% down and carry higher rates because they're riskier for lenders.
The trade-off is documentation. Conventional requires full income verification—pay stubs, W-2s, tax returns, bank statements. DSCR skips all of that and just runs a rent estimate against the mortgage payment. Closings are faster because there's less paperwork to review.
Use conventional if you're buying a home to live in or a second home in Rohnert Park. The rates are better, down payments are flexible, and PMI drops off once you hit 20% equity. It's the cheapest money available for owner-occupants.
Use DSCR if you're buying a rental property and want speed over cost. Investors with multiple properties, self-employed borrowers with write-offs, or anyone who doesn't want to share tax returns should look at DSCR first. The property's rent roll matters more than your 1040.
No. DSCR loans require the property to be a non-owner-occupied investment rental. You must have a different primary residence.
Conventional loans have lower rates because they're lower risk. DSCR rates run 0.5-1% higher due to the investment property classification.
No. Conventional loans qualify based on your personal income from employment, not the property's rental potential.
Most DSCR lenders require 20-25% down. A few will go to 15% but charge higher rates for the added risk.
DSCR usually closes faster because there's no income verification. Conventional loans require full doc review, which takes longer.