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in Exeter, CA
Exeter buyers face a choice: conventional financing for primary residences or DSCR loans for rental properties. The path you choose depends entirely on whether you're living in the home or collecting rent.
Conventional loans verify your W-2 income and expect you to occupy the property. DSCR loans ignore your tax returns and only care if the rent covers the mortgage payment.
Conventional loans run through Fannie Mae or Freddie Mac guidelines. You need verifiable income, 620+ credit, and 3-25% down depending on the property type.
These loans offer the lowest rates in Exeter when you're buying a primary residence. Lenders verify employment, pull tax returns, and check debt-to-income ratios under 50%.
You can put down as little as 3% on a single-family home. PMI drops off at 20% equity, and you get access to standard 15- or 30-year fixed terms.
DSCR loans approve based on rental income divided by the mortgage payment. If that ratio hits 1.0 or higher, you qualify regardless of your W-2 or 1099 income.
These are non-QM products built for real estate investors in Tulare County. You need 20-25% down, 680+ credit, and a property that can support the debt through rent.
Lenders don't pull tax returns or verify employment. They order a rent schedule from an appraiser and calculate whether the property cash flows.
Down payment: Conventional allows 3% for owner-occupants. DSCR requires 20-25% because you're not living there.
Approval method: Conventional underwrites your income and employment. DSCR underwrites the property's rental income. Credit standards differ by about 60 points in most cases.
Rate pricing: Conventional loans price lower because government-sponsored entities back them. DSCR loans carry 1-2% higher rates as non-QM products. Rates vary by borrower profile and market conditions.
Use conventional if you're living in the Exeter property. The rates and down payment terms beat DSCR every time for primary residences.
Choose DSCR if you're buying a rental and your tax returns show low income due to write-offs. Many real estate investors can't qualify conventionally because their 1040s are optimized for tax savings.
We shop both options across 200+ lenders to find the best fit. Some borrowers start with conventional for a primary home, then refinance into DSCR after converting it to a rental.
No. DSCR loans are strictly for investment properties that generate rental income. Primary residences require conventional or government-backed financing.
Conventional loans offer lower rates because Fannie and Freddie back them. DSCR products run 1-2% higher as non-QM loans.
Yes. Conventional appraisals focus on property value. DSCR appraisals also include a rent schedule to calculate debt service coverage.
Yes. Many investors buy with conventional as a primary home, then refinance to DSCR after converting to a rental property.
Conventional requires 620 minimum. DSCR loans typically need 680 or higher to qualify based on rental income alone.