Loading
in Lemoore, CA
Both bank statement and DSCR loans skip traditional W-2 income verification. The difference comes down to whether you're buying a primary residence or investment property.
Lemoore's proximity to Naval Air Station Lemoore creates steady rental demand. Self-employed buyers need bank statement loans for owner-occupied homes, while investors use DSCR loans to qualify on property cash flow alone.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits. Lenders calculate your income by averaging deposits, then apply an expense ratio to account for business costs.
You need 10-20% down and credit scores typically above 620. These work for primary homes, second homes, or investment properties where you want to use your business income for qualification.
DSCR loans qualify you based solely on rental income from the property itself. Lenders divide monthly rent by the mortgage payment to calculate the debt service coverage ratio.
You need at least 20% down for most DSCR loans. Your personal income doesn't matter—lenders only care that the property generates enough rent to cover the mortgage payment plus reserves.
Bank statement loans require proving your business generates income through deposits. DSCR loans only require proving the property generates rent through a lease or market rent analysis.
Bank statement loans work for any occupancy type. DSCR loans are investment-only. Rates vary by borrower profile and market conditions, but DSCR loans often price slightly better because the property income is more predictable than self-employment income.
Choose bank statement loans if you're self-employed and buying a home to live in. Also use them if you're an investor but want to leverage your strong business income rather than property cash flow.
Choose DSCR loans if you're buying rental property and either don't want to disclose personal income or own multiple properties already. DSCR loans scale better for portfolio investors since each property qualifies independently.
Yes, bank statement loans work for investment properties. But DSCR loans often make more sense because you qualify on rent instead of business income.
Most lenders want at least 1.0, meaning rent covers the payment. Military rental demand in Lemoore can support higher ratios, improving your pricing.
DSCR loans typically price 0.25-0.50% better than bank statement loans. Property income is more predictable than self-employment income to lenders.
No. Bank statement loans use deposits, and DSCR loans use rental income. Neither requires W-2s or tax returns for income verification.
Yes. DSCR loans scale well because each property qualifies independently. Your personal debt-to-income ratio doesn't factor into approval.