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in Maricopa, CA
Both loans skip traditional income docs. But they're built for very different borrowers.
Bank statement loans work for self-employed buyers. DSCR loans work for rental investors. Knowing the difference saves you time.
Bank statement loans use 12 to 24 months of deposits to prove income. No tax returns, no pay stubs.
This is the go-to loan for self-employed borrowers whose write-offs tank their taxable income. Lenders look at what actually hits your account.
DSCR loans qualify you based on the rental property's income. Your personal income stays out of it.
Lenders calculate the debt service coverage ratio — rent divided by monthly debt. A ratio at or above 1.0 is the usual threshold to qualify.
The core difference is what qualifies you. Bank statement loans look at your personal deposits. DSCR loans look at the property's rent.
Rates vary by borrower profile and market conditions. DSCR loans often carry slightly higher rates due to investment property risk. Bank statement loans price off your credit and deposit history.
Self-employed and buying a primary home or second home? Bank statement is your path. You need the property for personal use.
Buying a rental in Maricopa and want the rent to carry the loan? DSCR is cleaner. Your personal income never enters the equation.
No. DSCR loans are for investment properties only. For a primary home, bank statement loans are the non-QM option.
Yes, but your personal income still qualifies you. DSCR lets the rent do that work instead.
Both typically require around 620 minimum. Exact requirements vary by lender and loan scenario.
Yes. Most DSCR lenders allow LLC vesting. Bank statement loans almost always require individual borrowers.
Most lenders want a ratio of 1.0 or higher. Some allow below 1.0 with stronger credit or a larger down payment.
Bank statement loans often start at 10% down. DSCR loans typically require 20% to 25% for investment properties.