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in Martinez, CA
Martinez investors and self-employed borrowers often face challenges qualifying for traditional mortgages. Bank Statement Loans and DSCR Loans offer two distinct non-QM solutions for Contra Costa County real estate buyers who don't fit conventional lending boxes.
Both options bypass W-2 income verification, but they serve different purposes. Bank Statement Loans work for self-employed individuals buying primary residences or investment properties. DSCR Loans focus exclusively on rental property cash flow for real estate investors.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to calculate qualifying income. Lenders analyze deposits to determine average monthly income, typically using 50% to 75% of total deposits depending on business expenses.
This option suits self-employed Martinez residents—contractors, business owners, consultants—who show strong cash flow but lack traditional tax documentation. You can use these loans for primary homes, second homes, or investment properties throughout Contra Costa County.
Rates vary by borrower profile and market conditions. Most programs require credit scores above 620 and down payments starting at 10% to 15%, though higher scores and larger down payments secure better terms.
DSCR Loans qualify borrowers based solely on rental property income, not personal earnings. Lenders calculate the Debt Service Coverage Ratio by dividing monthly rental income by the monthly mortgage payment (including taxes and insurance).
A DSCR above 1.0 means the property generates enough rent to cover its costs. Martinez investors can qualify with ratios as low as 0.75, though stronger ratios secure better pricing. Your personal income, tax returns, and employment history don't factor into approval.
These loans exclusively finance investment properties—single-family rentals, multi-family units, or small apartment buildings. Many Martinez real estate investors use DSCR Loans to build portfolios without income verification limits.
The fundamental difference lies in what qualifies you. Bank Statement Loans evaluate your personal or business income through deposits. DSCR Loans ignore your income entirely and focus on whether the rental property pays for itself.
Bank Statement Loans work for owner-occupied homes and investment properties, making them more versatile for Martinez buyers planning to live in their purchase. DSCR Loans serve only investors acquiring rental properties in Contra Costa County or beyond.
Documentation requirements differ significantly. Bank Statement Loans need months of deposit records and business expense explanations. DSCR Loans require lease agreements, rent rolls, and property appraisals showing rental income potential.
Choose Bank Statement Loans if you're self-employed and buying a Martinez home to live in, or if you want flexibility for various property types. This option works when you have strong cash flow but write off significant business expenses that reduce taxable income.
Select DSCR Loans if you're building a rental portfolio and want to avoid income verification altogether. Martinez investors with multiple properties appreciate how DSCR Loans don't count existing mortgages against personal debt-to-income ratios.
Some borrowers qualify for both options. A Martinez business owner buying a rental property could use either loan type. Consider your long-term strategy—Bank Statement Loans offer more versatility, while DSCR Loans provide unlimited scalability for serious investors.
No, you choose one qualification method per loan. However, you could use Bank Statement Loans for one property and DSCR Loans for another in your portfolio.
Rates vary by borrower profile and market conditions. Neither consistently beats the other—your credit score, down payment, and property details affect pricing more than loan type.
No. DSCR Loans don't consider employment status at all. W-2 employees, business owners, and retirees all qualify based purely on rental property income.
Yes, both options work for refinancing. Bank Statement Loans can refinance any property type, while DSCR Loans refinance investment properties only.
Bank Statement Loans typically start at 10-15% down. DSCR Loans usually require 20-25% down, with better terms available at higher down payment levels.