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in Kingsburg, CA
Both bank statement and DSCR loans skip traditional income verification, but they serve completely different borrowers. One qualifies you based on your business deposits, the other on your rental property's cash flow.
Kingsburg investors and self-employed borrowers often need these non-QM options when W-2 verification doesn't work. Choosing the wrong one wastes time and costs you deals in this tight Fresno County market.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate your income. Lenders apply a percentage to your average monthly deposits—typically 50% for personal accounts, higher for business accounts.
This works for self-employed Kingsburg residents buying primary homes, second homes, or investment properties. You need consistent deposits and decent credit, usually 620 minimum but 680 gets better rates.
The property matters less here than your banking history. Lenders want to see stable cash flow through your accounts, not wild month-to-month swings that suggest inconsistent income.
DSCR loans ignore your personal income entirely. Lenders qualify you based on whether the rental property's income covers its own debt payment, using a debt service coverage ratio calculation.
A DSCR of 1.0 means rent equals the mortgage payment. Most lenders want 1.25 or higher, meaning rent covers the payment plus 25%. This works for Kingsburg rental properties with strong lease agreements or market rents.
Your tax returns don't matter. Your job doesn't matter. Only the property's rental income versus its projected mortgage payment matters. This fits investors with multiple properties or complex tax situations.
Bank statement loans require proof of your income through deposits. DSCR loans don't care about your income at all—they only verify the property generates enough rent to cover the mortgage.
You can use bank statement loans for any property type including your primary residence. DSCR loans only work for investment properties with rental income or strong rental potential.
Bank statement loans usually need lower down payments, often 10-15% for primary homes. DSCR loans typically require 20-25% down minimum because lenders see pure investment properties as higher risk.
Documentation differs completely. Bank statements require 12-24 months of account history showing consistent deposits. DSCR loans need a lease agreement or rental market analysis proving the property's income.
Choose bank statement loans if you're self-employed and buying a home to live in around Kingsburg. They also work if you want to buy a rental but your business deposits are strong and consistent.
Pick DSCR loans if you're investing in Kingsburg rentals and don't want to document personal income. This works best when the property has existing tenants or market rents clearly cover the mortgage at 1.25 DSCR.
Many Kingsburg investors with LLC-owned properties prefer DSCR because it separates their personal finances from investment loans. Bank statement borrowers typically want the property in their personal name.
Yes, bank statement loans work for investment properties. You qualify based on your business deposits, not the rental income.
Rates vary by borrower profile and market conditions. DSCR loans often price slightly higher because they're investment-only and ignore personal income.
Both typically start at 620 minimum. Bank statement loans may be slightly more flexible on credit since they verify your actual cash flow.
No, DSCR requires current rental income or immediate rental potential. You can't use it for a primary home you might convert later.
DSCR loans often close faster because they skip personal income verification. Bank statement loans need 12-24 months of account records reviewed.