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in Sutter Creek, CA
Sutter Creek investors and self-employed buyers face a choice between two non-QM paths. Bank statement loans qualify you based on business deposits, while DSCR loans ignore your personal income entirely.
Most borrowers assume they need W-2s to buy property in Amador County. These two programs prove otherwise, but they serve completely different situations.
The right choice depends on whether you're buying a home to live in or a rental property to cash flow. Mixing these up wastes time and costs money.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate qualifying income. Lenders analyze your average monthly deposits, then apply a percentage to account for business expenses.
This program works for self-employed buyers purchasing a primary residence, second home, or investment property. You need 10-20% down depending on property type and credit profile.
Rates typically run 1-2% higher than conventional loans. Credit scores above 680 get the best pricing, though some lenders approve borrowers at 620.
The main requirement is consistent deposits that show stable business income. Seasonal businesses can qualify if you provide two years of statements showing the pattern.
DSCR loans qualify you based on the rental income the investment property generates. Lenders compare the monthly rent to the monthly mortgage payment, property taxes, insurance, and HOA fees.
This program only works for investment properties, never primary residences. The property itself must cash flow, typically requiring rent to exceed all housing costs by 20-25%.
You need 20-25% down for most DSCR loans. Your personal income, job, and tax returns don't factor into approval at all.
Rates run similar to bank statement loans, about 1-2% above conventional. The property's rental strength matters more than your credit score, though 620 remains the floor.
Bank statement loans focus on your income through business deposits. DSCR loans ignore your income completely and look only at the property's rental potential.
Property type creates the clearest divide. Bank statement loans work for homes you'll live in or rent out, while DSCR loans only finance rentals.
Documentation differs sharply. Bank statement loans require months of deposit records from your business accounts. DSCR loans need a lease agreement or rent analysis, but nothing about your personal finances.
Down payments overlap at 20% for investment properties, but bank statement loans allow 10-15% down for primary homes. DSCR loans never drop below 20% since they only finance rentals.
Choose bank statement loans if you're self-employed and buying a home in Sutter Creek to live in. This program evaluates your ability to make payments through business income verification.
Choose DSCR loans if you're buying a rental property and want qualification based purely on the numbers. Your tax returns showing business losses or low reported income won't kill the deal.
Some investors qualify for both programs but pick DSCR because it's cleaner. No one reviews your bank statements, and closing moves faster when underwriters only analyze rent comps.
Rates vary by borrower profile and market conditions. Both programs cost more than conventional loans, but that's the trade-off for skipping traditional income verification.
Yes, bank statement loans work for rentals. But DSCR is simpler if the property cash flows well since it skips all personal income documentation.
No. DSCR loans qualify based on rental income only, so lenders don't request personal or business tax returns at all.
Rates are similar between both programs. Your credit score and down payment amount affect pricing more than the loan type.
Yes. Lenders use a market rent analysis to determine what the property should rent for in Sutter Creek's current market.
Large irregular deposits get excluded from income calculations. Lenders average consistent business-related deposits over 12-24 months.
No. DSCR loans don't care about your employment status since they qualify based on the property's rental income, not yours.