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in Shafter, CA
Shafter borrowers who don't fit traditional lending boxes have strong alternatives. Bank Statement Loans and DSCR Loans both offer flexible qualification paths without W-2 income verification.
The right choice depends on whether you're buying a primary residence as a self-employed borrower or investing in Kern County rental properties. Each loan type uses different income documentation methods tailored to specific borrower profiles.
Bank Statement Loans verify income through 12 to 24 months of personal or business bank statements instead of tax returns. Lenders analyze deposits to determine qualifying income for self-employed borrowers.
This option works well for Shafter business owners, freelancers, and contractors with strong cash flow but complex tax returns. You can purchase a primary residence, second home, or investment property using this documentation method.
Rates vary by borrower profile and market conditions. Expect minimum credit scores around 620-680 and down payments starting at 10-20% depending on your financial picture and property type.
DSCR Loans qualify you based on the rental property's income potential rather than your personal earnings. Lenders calculate the Debt Service Coverage Ratio by dividing monthly rent by the mortgage payment.
Real estate investors in Shafter use DSCR Loans to scale portfolios without personal income limits. Your tax returns and employment history don't factor into approval—only the property's rental performance matters.
These loans require properties that generate sufficient rental income to cover the mortgage. Rates vary by borrower profile and market conditions, with credit scores typically starting at 640 and down payments from 20-25%.
The fundamental difference lies in what income counts. Bank Statement Loans evaluate your personal or business cash flow, while DSCR Loans focus solely on rental income the property generates.
Property use separates these options further. Bank Statement Loans work for primary residences and investment properties. DSCR Loans exclusively serve investors purchasing rental properties in Shafter and throughout Kern County.
Credit and down payment requirements differ slightly. Bank Statement Loans may accept lower credit scores in some cases, while DSCR Loans typically require stronger rental cash flow to offset the lack of personal income verification.
Choose Bank Statement Loans if you're self-employed and buying a home to live in or want flexibility to purchase various property types. This option makes sense when you have strong deposits but complicated tax returns that understate your true earnings.
Select DSCR Loans when building a Shafter rental portfolio without personal income affecting your borrowing capacity. Investors with multiple properties benefit because each deal qualifies independently based on its rental numbers.
Both options require working with lenders experienced in Non-QM products. The loan structures are more complex than conventional mortgages, so understanding the specific requirements and pricing for each matters before you commit.
Yes, Bank Statement Loans work for investment properties. However, DSCR Loans often provide better terms for pure rental purchases since they're designed specifically for that purpose.
Bank Statement Loans sometimes allow 10-15% down for primary residences. DSCR Loans typically require 20-25% down since they're investment-focused and carry different risk profiles.
Bank Statement Loans don't require tax returns for income verification. DSCR Loans also skip personal tax returns entirely, focusing only on rental income documentation instead.
Absolutely. Use a Bank Statement Loan for your Shafter primary residence and DSCR Loans for rental properties. Each property qualifies independently based on the appropriate criteria.
Closing timelines are similar, typically 30-45 days. DSCR Loans may move slightly faster since they require less personal documentation, but both depend on complete property appraisals and title work.