Loading
in Lafayette, CA
Lafayette's mix of high-value primary residences and investment properties creates demand for both bank statement and DSCR loans. These non-QM options serve different borrowers with different goals.
Bank statement loans work for self-employed buyers purchasing a home to live in. DSCR loans are built for investors who want the rental income to qualify them, not their personal tax returns.
Bank statement loans use 12 or 24 months of personal or business bank deposits to calculate income. Lenders apply a percentage to your average monthly deposits, typically 50-75% depending on the expense factor.
You need 10-20% down, credit scores around 620-640, and the property must be your primary residence or second home. These loans don't work for investment properties because underwriting focuses on your ability to pay, not the rental income.
DSCR loans qualify you based solely on the property's rental income versus the mortgage payment. If the property generates enough rent to cover the debt, you're approved—no personal income verification needed.
Most lenders want a DSCR of 1.0 or higher, meaning rent equals or exceeds the total housing payment. You'll need 20-25% down, credit scores around 620-660, and the property must be an investment rental, not your primary home.
The core split is intent: bank statement loans are for self-employed people buying a home to live in. DSCR loans are for investors building rental portfolios who don't want to show tax returns.
Bank statement loans analyze your deposits and expenses. DSCR loans don't care about your income at all—they only care if the rent covers the mortgage. Rates and down payments are similar, but DSCR loans typically require slightly more down.
Choose bank statement loans if you're self-employed and buying in Lafayette to live there. Your business income shows in deposits but gets written off on taxes, so traditional loans underqualify you.
Choose DSCR if you're buying a Lafayette rental and want to scale without hitting personal debt-to-income limits. These loans let you stack properties based on each property's numbers, not your W-2 or 1099.
No. Bank statement loans require owner occupancy or second home use. Investment properties need DSCR or other investor loan programs.
Some lenders allow ratios as low as 0.75, but you'll pay higher rates and need more down. Stronger ratios get better pricing.
DSCR loans close in personal or LLC name. Bank statement loans typically require personal ownership since they verify individual income through deposits.
Rates vary by borrower profile and market conditions. Both price similarly, though DSCR can be slightly lower if the property's ratio is strong.
You can refinance a bank statement primary home into conventional once your tax returns support income. DSCR properties stay investor loans unless you occupy them.