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in Bakersfield, CA
Self-employed borrowers and real estate investors in Bakersfield face unique challenges when qualifying for traditional mortgages. Bank Statement Loans and DSCR Loans offer alternative paths to financing, each designed for different situations.
Bank Statement Loans focus on your business cash flow, while DSCR Loans look at rental property income. Understanding which option matches your goals helps you move forward with confidence in Kern County's diverse real estate market.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to verify income instead of tax returns. This makes them ideal for self-employed Bakersfield business owners, freelancers, and entrepreneurs whose tax write-offs reduce their reported income.
Lenders analyze deposits to calculate qualifying income, typically applying a percentage factor to account for business expenses. This approach captures your actual cash flow rather than taxable income, often revealing stronger earning power than traditional documentation shows.
These loans work for primary residences, second homes, and investment properties. You'll typically need a credit score of 620 or higher and a down payment of at least 10%, though 20% down often secures better terms.
DSCR Loans qualify you based on a rental property's income rather than your personal finances. The property must generate enough rent to cover its mortgage payment, taxes, insurance, and other expenses—typically a ratio of 1.0 or higher.
Bakersfield investors use DSCR Loans to build portfolios without hitting traditional debt-to-income limits. Your personal income, employment history, and existing debt don't factor into approval, making these loans powerful tools for scaling rental holdings.
These are strictly for investment properties that generate rental income. Most lenders require 15-25% down and credit scores around 640 or higher, with better terms available for stronger borrower profiles and higher ratios.
The fundamental difference lies in what income gets evaluated. Bank Statement Loans assess your business earnings through deposits, while DSCR Loans focus entirely on rental property cash flow. This means Bank Statement Loans can finance your own home, but DSCR Loans cannot.
Bank Statement Loans require proving your income through consistent deposits over many months. DSCR Loans skip personal income entirely, instead requiring an appraisal that includes a rent schedule showing the property generates sufficient income.
For Bakersfield borrowers, Bank Statement Loans suit those building or buying a primary residence while running a business. DSCR Loans serve investors expanding rental portfolios, especially those with multiple properties or high existing debt from other investments.
Choose Bank Statement Loans if you're self-employed and buying a home to live in, or if you're purchasing a rental property but want to qualify based on your strong business income. These work well for Bakersfield entrepreneurs, contractors, and small business owners with healthy cash flow.
Select DSCR Loans when acquiring investment properties and you want to keep personal finances separate from lending decisions. This approach benefits investors with multiple properties, those with irregular personal income, or buyers focused purely on cash-flowing rentals in Kern County.
Some borrowers qualify for both options. In those cases, compare rates, down payment requirements, and long-term strategy. DSCR Loans often allow faster portfolio growth since they don't count against personal debt ratios.
Yes, Bank Statement Loans work for investment properties, primary residences, and second homes. You'll qualify based on your business income shown through bank deposits rather than the rental property's income.
No, DSCR Loans don't require personal income documentation like tax returns or pay stubs. Qualification depends entirely on whether the rental property generates enough income to cover its expenses.
Bank Statement Loans may accept as little as 10% down, while DSCR Loans typically start at 15-25%. Actual requirements vary by borrower profile and specific property.
Absolutely. Many Bakersfield investors use Bank Statement Loans for personal residences while building rental portfolios with DSCR Loans. Each property qualifies independently based on the loan program used.
Rates vary by borrower profile and market conditions for both programs. DSCR Loans may have slight rate advantages when the property shows strong cash flow, while Bank Statement Loans reward borrowers with substantial documented deposits.