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in Parlier, CA
Parlier investors and self-employed borrowers often don't fit conventional loan boxes. Bank statement and DSCR loans both skip W-2 income verification, but they serve different purposes.
Bank statement loans prove income through deposits. DSCR loans ignore your income entirely and focus on rental cash flow.
Choosing the wrong structure costs you in rates or kills deals that should close. Here's how to match the loan to your situation in Fresno County.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits to calculate your qualifying income. Lenders typically use 50% to 75% of average monthly deposits as income.
You need decent personal credit, usually 620 minimum. Down payment starts at 10% for primary homes, 15% for investment properties.
This works for contractors, farmers, restaurant owners, and other Parlier business owners whose tax returns don't reflect real cash flow. You're buying as an owner-occupant or building a rental portfolio while running a business.
DSCR loans qualify you based solely on the rental property's income versus its debt obligations. The property must generate enough rent to cover the mortgage payment, taxes, insurance, and HOA fees.
Lenders want a DSCR ratio of at least 1.0, meaning rent equals expenses. Ratios above 1.25 unlock better rates.
Your personal income never enters the equation. This structure works for investors adding to existing portfolios or buying multi-family properties in Parlier.
Expect 20% to 25% down and credit scores starting at 640. No income docs, no tax returns, no employment verification.
Bank statement loans underwrite you as a borrower with income documentation. DSCR loans underwrite the property as an income-producing asset.
Bank statement works for primary residences and investment properties. DSCR only works for non-owner-occupied rentals.
Down payments differ significantly. Bank statement starts at 10% for owner-occupied homes. DSCR requires 20% minimum because you're not living there.
Rate pricing depends on loan structure. Bank statement rates reflect your business deposit history and debt-to-income ratio. DSCR rates hinge on property cash flow and rental market strength.
Use bank statement loans when you're self-employed and buying a home to live in. Also choose bank statement if you're an investor who needs to show income for multiple properties.
Use DSCR when the property's rent makes the deal work but your personal income doesn't. This includes investors with maxed-out debt ratios, retirees with assets but low documented income, or anyone buying multi-family rentals.
Parlier's agricultural economy means many borrowers run seasonal businesses with inconsistent deposits. Bank statement loans smooth those fluctuations across 12 or 24 months.
For rental properties in Fresno County, DSCR eliminates personal income scrutiny entirely. If the property cash flows at 1.0 or higher, you qualify regardless of what your tax return shows.
Yes, but you'll need 15% to 20% down and lenders will verify your self-employment income. DSCR often makes more sense for pure investment purchases.
Most lenders require 1.0 minimum, meaning rent covers the full payment. Ratios above 1.25 unlock better pricing and smoother approvals.
Bank statement loans average deposits over 12-24 months, smoothing seasonal swings. DSCR doesn't care about your business income at all.
DSCR typically closes quicker because there's no personal income to verify. Bank statement loans need 12-24 months of statements analyzed.
Not on the same property. But you can use bank statement for your primary home and DSCR for rentals simultaneously.