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in Avenal, CA
Self-employed borrowers and real estate investors in Avenal often hit the same wall with conventional loans. Traditional lenders want W-2s and tax returns that don't show your actual earning power.
Bank statement and DSCR loans both solve this problem, but they work for completely different scenarios. One qualifies you based on business cash flow, the other ignores your income entirely.
Bank statement loans use 12 or 24 months of personal or business bank statements to calculate your income. Lenders analyze deposits to determine qualifying income, typically averaging them and applying a percentage.
You can use these to buy a primary residence, second home, or investment property in Avenal. Most borrowers need 10-20% down and a 620+ credit score, though programs vary by lender.
DSCR loans qualify you based solely on the rental property's income versus its expenses. The lender calculates a ratio: if the rent covers the mortgage payment and costs, you're approved regardless of your personal income.
You never submit tax returns, pay stubs, or employment verification. The property must be an investment rental—DSCR loans don't work for homes you'll live in, even part-time.
The core split: bank statement loans verify YOUR income from bank deposits, while DSCR loans only care about the PROPERTY'S rental income. If you're buying a home to live in, DSCR isn't even an option.
Bank statement programs typically require lower down payments and work with 620 credit. DSCR loans need 20-25% down minimum and often want 640+ scores, but they're faster since you skip all personal income verification.
Rates vary by borrower profile and market conditions, but DSCR loans often price slightly higher due to their no-doc structure. Bank statement loans give you more property type flexibility.
Choose bank statement loans when you're self-employed and buying a home to live in around Avenal. Also use them when you're an investor who wants to qualify based on multiple income streams or business cash flow.
Pick DSCR when you're buying a rental property and the rent covers the mortgage. This works especially well if you write off substantial business expenses that tank your taxable income, or if you're building a portfolio and don't want to show personal income for each deal.
Yes, bank statement loans work for rentals, primary homes, and second homes. You qualify based on your business or personal deposits, not the property's rent.
No personal income docs needed. Lenders only review the lease agreement or rent schedule to verify the property's income potential.
Rates vary by borrower profile and market conditions. Bank statement loans sometimes price better due to full income verification, but your specific scenario determines actual rates.
Absolutely. Use bank statement for your primary residence and DSCR for rental acquisitions. We see investors mixing both regularly.
Lenders average deposits over 12 or 24 months to smooth fluctuations. Large one-time transfers get excluded from income calculations.
Location matters only for determining realistic rent estimates. Lenders verify local rental rates to confirm the property's income potential.