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in San Joaquin, CA
San Joaquin borrowers often need non-QM financing when traditional documentation won't work. Bank Statement and DSCR loans solve different problems—one proves self-employed income, the other ignores personal income entirely.
Most borrowers misunderstand when each loan makes sense. A business owner buying a primary home needs Bank Statement. An investor buying rental property wants DSCR.
Bank Statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Lenders average your monthly deposits, subtract a percentage for expenses, and use that as qualifying income.
This works for self-employed borrowers buying primary homes, second homes, or investment properties. You need consistent deposits and reasonable debt-to-income ratios after the expense adjustment.
DSCR loans qualify you based solely on rental income from the property you're buying. Lenders divide the monthly rent by the monthly PITI payment to get a ratio—typically need 1.0 or higher.
Your personal income, tax returns, and employment don't matter at all. This is strictly an investment property loan. You can't use it for homes you'll live in.
Bank Statement loans verify your ability to repay through personal income evidence. DSCR loans don't care about your personal finances—only whether the rental property covers its own payment.
Bank Statement works for any property type you'll occupy or rent. DSCR is investment-only. Bank Statement requires DTI analysis. DSCR skips it completely if the property performs.
Choose Bank Statement if you're self-employed and buying a home to live in. Also use it for investment properties when you want to leverage personal income alongside rental income.
Choose DSCR if you're buying a rental property in San Joaquin and prefer to keep personal finances private. It's faster when the property cash flows well and you don't want to provide tax returns or employment documentation.
Yes. Bank Statement works for investment properties, primary homes, and second homes. You'll qualify using your business deposits plus any rental income from the property.
Typically yes. Most DSCR loans require 20-25% down. Bank Statement loans sometimes allow 10-15% down depending on credit and loan amount.
Rates vary by borrower profile and market conditions. Neither consistently beats the other—pricing depends on credit score, down payment, and property details.
DSCR never requires personal tax returns. Bank Statement loans skip tax returns but need bank statements showing deposit history instead.
Both typically require 620 minimum. Higher scores get better pricing. DSCR lenders sometimes accept 600 with larger down payments.