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in Corcoran, CA
Self-employed borrowers and real estate investors in Corcoran often hit a wall with traditional mortgages. Both bank statement and DSCR loans skip W-2 verification, but they serve completely different purposes.
Bank statement loans qualify you based on your business cash flow. DSCR loans ignore your income entirely and focus on what the rental property can generate. Picking the wrong one costs you time and wastes a rate lock.
Bank statement loans use 12 to 24 months of personal or business bank deposits to calculate your income. Underwriters average your deposits and apply an expense ratio—typically 25% to 50% depending on your business type.
You can buy a primary residence, second home, or investment property with this loan. Credit score minimums usually start at 620, and most lenders allow up to 90% LTV on owner-occupied properties. Rates run 0.5% to 1.5% higher than conventional.
DSCR loans qualify based on the rental property's income divided by its debt obligations. If the property generates $2,000 monthly rent and the mortgage payment is $1,600, your DSCR is 1.25. Most lenders want 1.0 or higher.
No personal income verification required—lenders don't ask for tax returns, W-2s, or bank statements. Credit minimums typically start at 620, with 20% to 25% down required. Investment properties only. You cannot use this for a home you'll live in.
The core split: bank statement loans qualify you as a borrower, DSCR loans qualify the property as an investment. If you're self-employed and want to live in the Corcoran home you're buying, bank statement is your only option. DSCR won't approve owner-occupied purchases.
Documentation differs drastically. Bank statement loans require 12-24 months of statements, proof of business ownership, and a CPA letter in some cases. DSCR loans need a lease agreement or rent schedule—that's it. Personal financials don't matter.
Choose bank statement loans if you're self-employed and buying a home to live in—or if you're an investor whose rental properties don't cash flow well yet. This loan looks at your ability to pay, not the property's rental income.
Choose DSCR if you're buying a rental property in Corcoran and the rent covers the mortgage payment. Investors with inconsistent personal income or those who want to avoid tax return scrutiny prefer DSCR. It's faster and requires less paperwork.
Yes. Bank statement loans work for investment properties, but you'll need to document your personal income through deposits. DSCR is usually simpler for pure investment deals.
Rates are similar, typically 0.5% to 1.5% above conventional loans. Your credit score and down payment affect pricing more than loan type. Rates vary by borrower profile and market conditions.
Bank statement loans allow 10% down on owner-occupied homes, sometimes up to 90% LTV. DSCR loans require 20-25% down minimum since they're investment-only.
Some lenders approve DSCR ratios as low as 0.75, but you'll pay higher rates and need more down. Bank statement loans make more sense for break-even properties.
DSCR loans close faster—often in 21 days—because there's no personal income verification. Bank statement loans take 30-45 days due to underwriter review of your deposits.