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in Tehama, CA
These two loans serve very different buyers. Conventional works for owner-occupants with steady income. DSCR is built for investors letting rental cash flow do the qualifying.
Tehama County has rural land and rental properties where both loan types show up. Knowing which fits your deal saves time and money.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. Lenders check your W-2s, tax returns, and debt-to-income ratio closely.
You need at least a 620 credit score. Put down 20% and you skip private mortgage insurance — that matters on a long-term hold.
DSCR loans skip your personal income entirely. The lender looks at whether the rental property generates enough income to cover its mortgage payment.
Most lenders want a DSCR of 1.0 or higher — meaning rent covers the full payment. A 1.25 ratio gets you better pricing. No tax returns required.
Local decision guide
Use this comparison to weigh Conventional Loans and DSCR Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Tehama.
These two loans serve very different buyers. Conventional works for owner-occupants with steady income. DSCR is built for investors letting rental cash flow do the qualifying.
Tehama County has rural land and rental properties where both loan types show up. Knowing which fits your deal saves time and money.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. Lenders check your W-2s, tax returns, and debt-to-income ratio closely.
Conventional rates run lower, but DSCR rates reflect the added risk of investor financing. HousingWire flagged the 30-year fixed hitting 6.57% — DSCR rates often price above that. Rates vary by borrower profile and market conditions.
Conventional limits your rental property count. DSCR lenders don't care how many doors you own. That matters if you're building a Tehama County portfolio.
Buying a primary home or second home? Use conventional. Your income qualifies you and the rate will be better. DSCR is not designed for owner-occupants.
Buying a rental in Tehama County and your tax returns show losses? DSCR is your path. Investors who write off depreciation often get killed on conventional qualifying.
No. DSCR loans are investment property only. For a primary residence, you need conventional or a government-backed loan.
Most DSCR lenders want 680 or higher. Some go to 660, but pricing gets worse fast below 700.
It can, but Fannie Mae limits you to 10 financed properties. Beyond that, DSCR is usually the cleaner path.
DSCR often closes faster — no income docs means fewer underwriting conditions. Conventional with full docs can take longer.
No. Conventional loans require individual borrowers. DSCR lenders commonly lend directly to LLCs.