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in San Ramon, CA
San Ramon's diverse real estate market serves both self-employed professionals and property investors. Bank Statement Loans and DSCR Loans offer alternative financing paths when traditional documentation doesn't fit your situation.
Both are non-QM loan products that skip standard W-2 verification. Your choice depends on whether you're buying your residence or an investment property. Understanding each option helps you select the right financing strategy.
Bank Statement Loans verify income through 12 to 24 months of personal or business bank deposits. Lenders calculate qualifying income from your average monthly deposits. This works well for self-employed borrowers with strong cash flow but irregular paychecks.
You can use these loans for primary residences, second homes, or investment properties in San Ramon. The key requirement is consistent deposit activity showing your ability to repay. Rates vary by borrower profile and market conditions.
Self-employed professionals, business owners, and freelancers commonly use this option. Your bank statements replace tax returns and pay stubs in the qualification process.
DSCR Loans qualify you based on rental property income, not your personal earnings. Lenders calculate the Debt Service Coverage Ratio by dividing monthly rent by the mortgage payment. A ratio above 1.0 means the property covers its own payment.
These loans work exclusively for investment properties in San Ramon and throughout Contra Costa County. Your employment status and tax returns don't factor into approval. The property's rental income is what matters.
Real estate investors use DSCR loans to scale their portfolios without income documentation limits. You can qualify for multiple properties simultaneously if each meets the coverage ratio requirement.
The primary difference is what gets verified. Bank Statement Loans examine your personal or business cash flow. DSCR Loans analyze the rental property's income potential. One focuses on you as the borrower; the other focuses on the asset.
Property type matters significantly. Bank Statement Loans work for homes you'll live in or investment properties. DSCR Loans only apply to rental investments. If you're buying your San Ramon home, only Bank Statement Loans will work.
Documentation requirements differ substantially. Bank Statement Loans need consistent deposit records from your accounts. DSCR Loans require a lease agreement or rental appraisal showing income potential. Neither requires tax returns or W-2s.
Choose Bank Statement Loans if you're self-employed and buying your primary residence in San Ramon. This option also works if you want investment properties but prefer qualifying through your business cash flow. Your consistent deposits become your qualification strength.
Select DSCR Loans when building an investment portfolio in Contra Costa County. This works best if you want to avoid personal income scrutiny or already own multiple properties. The rental income does the qualifying work for you.
Some investors use both products strategically. Bank Statement Loans might fund your first investment property. DSCR Loans then help you scale without hitting income documentation barriers. Consider your current situation and future property goals.
Yes, you can have a Bank Statement Loan on your San Ramon residence and DSCR Loans on rental properties. Many investors use both products strategically within their portfolio.
Rates vary by borrower profile and market conditions for both products. Neither consistently offers lower rates. Your specific financial situation determines which pricing you receive.
Down payment requirements differ based on property type and lender guidelines. Both typically require larger down payments than conventional loans, often 15-25% minimum.
Both products typically close in 30-45 days. Bank Statement Loans may require additional time gathering deposit records. DSCR Loans need rental income verification through appraisal or lease.
Yes, you can refinance between loan types if your situation changes. Some investors start with Bank Statement Loans then refinance to DSCR when building larger portfolios.