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in Antioch, CA
Antioch investors and self-employed borrowers often find traditional mortgage requirements challenging. Both Bank Statement Loans and DSCR Loans offer flexible qualifying options without W-2s or tax returns.
These non-QM loans serve different purposes in Contra Costa County's market. Bank Statement Loans help business owners buy primary residences or investment properties. DSCR Loans focus exclusively on rental property cash flow.
Understanding which loan matches your situation saves time and positions you for approval. Your income source and property type determine the best path forward.
Bank Statement Loans use 12 to 24 months of personal or business bank deposits to calculate qualifying income. Lenders analyze your deposits and apply an expense factor, typically 25% to 50%, depending on account type.
These loans work for self-employed borrowers purchasing primary homes, second homes, or investment properties throughout Antioch. You provide bank statements instead of tax returns, which often show lower income due to business deductions.
Rates vary by borrower profile and market conditions. Most programs require 10% to 20% down payment and credit scores above 620, though some lenders accept lower scores with compensating factors.
DSCR Loans qualify you based solely on rental property income. The lender divides monthly rent by the monthly mortgage payment (principal, interest, taxes, insurance, HOA). A ratio above 1.0 means the property covers its own expenses.
These loans serve real estate investors purchasing or refinancing rental properties in Antioch. Your personal income never enters the equation—only the property's rental potential matters for qualification.
Most DSCR programs require 20% to 25% down payment for purchases. Rates vary by borrower profile and market conditions. You can close in your personal name or LLC, making them popular for building rental portfolios.
The qualifying method creates the biggest distinction. Bank Statement Loans examine your business cash flow through deposits. DSCR Loans examine only the rental property's income potential, using actual or market rent figures.
Property type eligibility differs significantly. Bank Statement Loans cover primary residences, vacation homes, and rentals. DSCR Loans work exclusively for investment properties you plan to rent out.
Down payment requirements typically run lower for Bank Statement Loans at 10% to 20%. DSCR Loans usually start at 20% to 25%. Both options offer competitive rates within the non-QM space, adjusting based on your down payment and credit profile.
Documentation burden varies too. Bank Statement Loans need 12 to 24 months of statements plus standard mortgage paperwork. DSCR Loans require a lease agreement or rental appraisal, often with lighter personal financial documentation.
Choose Bank Statement Loans when buying your Antioch home as a self-employed borrower. They also work for investors whose personal bank deposits support stronger qualification than rental income alone.
Pick DSCR Loans when building a rental portfolio where you want qualification based purely on property performance. They excel when your tax returns show limited income but you're purchasing cash-flowing rentals.
Many Contra Costa County investors use both loan types strategically. Bank Statement Loans might fund a primary residence while DSCR Loans build the investment side. Working with an experienced broker helps you match the right product to each property.
Consider your documentation comfort level too. If gathering 24 months of bank statements feels overwhelming, DSCR's property-focused approach may suit you better. If you lack current rental income documentation, Bank Statement Loans offer more flexibility.
Yes, Bank Statement Loans work for investment properties. However, DSCR Loans often provide easier qualification for rentals since they focus on property income rather than your deposits.
Rates vary by borrower profile and market conditions. Both typically offer similar pricing within the non-QM space. Your down payment, credit score, and property type affect your specific rate more than loan program.
No personal rental history required. DSCR Loans qualify based on the subject property's rental income potential, verified through market rent analysis or existing lease agreements.
Yes, lenders can use bank statements from both spouses if both will be on the loan. They may combine personal and business accounts depending on your specific situation and deposit patterns.
DSCR Loans often close slightly faster because they require less personal financial documentation. Bank Statement Loans need 12-24 months of statements reviewed. Both typically close within 30-45 days.