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in Plymouth, CA
Both Bank Statement Loans and DSCR Loans skip traditional income verification. That makes them powerful tools for self-employed borrowers and investors who can't show W-2 income.
The key difference: Bank Statement Loans underwrite you, while DSCR Loans underwrite the property. Your choice depends on whether you're buying a primary residence or an investment property in Plymouth.
Bank Statement Loans use 12 or 24 months of business or personal bank statements to calculate income. Lenders average your deposits and apply an expense ratio to determine what you can afford.
This works for self-employed borrowers buying primary residences, second homes, or investment properties. You need 10-20% down depending on the lender and your credit profile.
Rates typically run 1-2% higher than conventional loans. Rates vary by borrower profile and market conditions, but most Plymouth borrowers see 7-9% range for these programs.
DSCR Loans qualify you based on rental income divided by the mortgage payment. If the property generates enough rent to cover the debt, you're approved—regardless of your personal income.
These are investment-property-only loans. You can't use DSCR for a primary residence or second home in Plymouth, even if you plan to rent it out later.
Most lenders want a DSCR ratio of at least 1.0, meaning rent equals or exceeds the mortgage payment. Ratios above 1.25 unlock better rates. Expect 20-25% down and credit scores around 640 minimum.
Bank Statement Loans focus on your income and ability to repay. DSCR Loans focus on the property's cash flow and ignore your personal finances entirely.
If you're self-employed and buying a home to live in, Bank Statement is your only option. If you're buying a rental property and don't want to show tax returns, DSCR is faster and simpler.
Bank Statement Loans allow lower down payments—sometimes 10% for strong borrowers. DSCR typically requires 20-25% regardless of credit. Both carry higher rates than conventional loans.
Choose Bank Statement Loans if you're buying a primary residence or second home in Plymouth. Also use this if you're an investor but want one loan program for multiple property types.
Choose DSCR if you're strictly buying rentals and want the simplest approval process. You skip income docs entirely, and underwriting moves faster when the property cash flows well.
Many Amador County investors use both: Bank Statement for their personal residence, DSCR for rental acquisitions. Having access to 200+ wholesale lenders means we match the loan to each property.
Yes, Bank Statement Loans work for investment properties. You'll still need to prove income through deposits, but the property type doesn't disqualify you.
No. DSCR Loans skip all personal income documentation and qualify based solely on the property's rental income versus the mortgage payment.
Rates are similar—both run 1-2% higher than conventional. Strong DSCR ratios above 1.25 can unlock slightly better pricing than Bank Statement Loans.
No. DSCR requires the property be 100% investment use. If you're occupying any unit, you need a Bank Statement Loan or conventional financing.
DSCR closes faster—often 3-4 weeks since there's no income review. Bank Statement Loans take 4-6 weeks because lenders analyze months of deposit data.