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in Sanger, CA
Sanger borrowers who don't fit conventional guidelines have two strong non-QM paths. Bank statement loans work for self-employed buyers purchasing primary residences or investment properties.
DSCR loans skip personal income entirely and qualify investors based solely on rental cash flow. Your occupation and investment goals determine which route makes sense.
Bank statement loans use 12 or 24 months of business or personal bank deposits to calculate qualifying income. Lenders typically use 50% of deposits as income for self-employed borrowers.
You can buy a primary home, second home, or investment property in Sanger. Credit scores start at 620, and most programs allow up to 90% LTV on primary purchases with strong profiles.
This option works when you have solid cash flow but show minimal taxable income on tax returns. It's built for business owners who write off expenses and reinvest profits.
DSCR loans ignore your job, income, and tax returns completely. The property must generate enough rent to cover the mortgage payment plus taxes and insurance.
Lenders calculate a debt service coverage ratio by dividing rental income by the total monthly payment. Most programs require a DSCR of 1.0 or higher, meaning rent equals or exceeds the payment.
This works for Sanger rental properties only. No owner-occupancy allowed. Credit starts at 620, and LTV goes up to 80% on purchases for most borrowers.
Bank statement loans qualify you based on business deposits. DSCR loans qualify the property based on rental income. If you're self-employed buying a home to live in, bank statement is your only option between these two.
DSCR loans typically close faster because they skip personal income documentation entirely. Bank statement loans require collecting months of statements and sometimes business documentation.
Rates vary by borrower profile and market conditions. DSCR loans often price slightly higher due to investor-only status, but the gap narrows when your rental numbers are strong.
Choose bank statement loans if you're self-employed and buying a primary residence in Sanger. Also use them for investment properties when you want higher leverage or the rental income doesn't cover the full payment.
Choose DSCR loans when you're buying a rental property with strong cash flow and want the simplest documentation process. This works especially well for W-2 earners buying investment properties who don't want to factor personal income or DTI.
Some investors use both programs across different properties. Bank statement loans give flexibility on property type. DSCR loans streamline approvals when the rental numbers work.
Yes. Bank statement loans work for investment properties and often allow higher LTV than DSCR loans. You'll still need 12-24 months of bank statements showing business deposits.
Yes. The appraisal must include a rental income opinion based on comparable properties. That rental figure determines your DSCR and whether the deal qualifies.
Rates vary by borrower profile and market conditions. Bank statement loans often price better for strong personal credit, while DSCR pricing depends on the property's DSCR ratio.
DSCR loans skip tax returns entirely. Bank statement loans don't require tax returns for income calculation, but some lenders may still request them for file review.
Some lenders allow DSCR as low as 0.75 with larger down payments and higher rates. If the ratio is too weak, a bank statement loan may work better.
Yes. Both programs allow cash-out refinancing. DSCR uses the rental income, while bank statement uses your business deposits to qualify the new loan amount.