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in Huron, CA
Huron investors and self-employed borrowers often hit walls with traditional mortgage qualification. Both bank statement and DSCR loans solve the income verification problem, but they're built for completely different situations.
Bank statement loans verify income through deposits—ideal for business owners living in the property. DSCR loans ignore your personal income entirely and qualify the rental property itself.
Bank statement loans use 12 to 24 months of business or personal bank statements to calculate qualifying income. Underwriters analyze deposits, subtract business expenses, and arrive at usable income without tax returns.
You can use these for primary residences, second homes, or investment properties. Most lenders require 10-20% down and accept credit scores as low as 600, though better credit gets better rates.
DSCR loans qualify you based on rental income divided by the monthly mortgage payment. If the property generates $2,000 rent and the payment is $1,600, your ratio is 1.25—most lenders want 1.0 or higher.
These are investment-only loans. You cannot live in the property. Lenders don't ask for tax returns, pay stubs, or employment verification—they care only about the property's cash flow.
The fundamental split: bank statement loans qualify you as a borrower, DSCR loans qualify the property as an asset. If you're self-employed and want to live in Huron, bank statements work. If you're buying rental property, DSCR is cleaner.
Down payment requirements differ too. Bank statement loans start at 10% down for owner-occupied homes. DSCR loans typically require 20-25% down since they're investment properties with higher risk profiles.
Choose bank statement loans if you're self-employed and buying a home to live in. They work for Huron business owners who show strong deposits but write off income on tax returns, making traditional qualification impossible.
DSCR loans fit investors buying Fresno County rentals who want simple qualification. If the property cash flows and you have 20% down, your personal income is irrelevant—perfect for W-2 earners maxing out conventional loan limits or investors with complex tax situations.
Yes, bank statement loans work for investment properties. However, DSCR is usually simpler since it skips personal income review entirely.
Most lenders require 1.0 or higher, meaning rent covers the mortgage payment. Some accept 0.75 with larger down payments and rate adjustments.
Many non-QM loans include prepayment penalties for 1-5 years. We shop lenders with and without penalties based on your exit strategy.
Rates are comparable and depend more on credit score, down payment, and property type than loan program. Both typically run 1-3% above conventional rates.
Yes, if you convert your residence to a rental. DSCR refinances work when the property generates qualifying rental income.