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in Artesia, CA
Self-employed buyers and investors in Artesia face different financing challenges. Bank statement loans work for business owners who need income verification without tax returns.
DSCR loans ignore your personal income entirely. They qualify based on what the rental property generates, not your W-2 or 1099.
Bank statement loans use 12 or 24 months of business or personal bank deposits to calculate income. Lenders apply a percentage to your average monthly deposits—typically 50% for business accounts, higher for personal.
You can use these for primary homes, second homes, or investment properties in Artesia. Credit scores start around 620, and most programs allow up to 90% LTV depending on property type and credit profile.
DSCR loans measure one number: does the monthly rent cover the mortgage payment plus taxes and insurance? A ratio above 1.0 means the property breaks even or profits.
Your personal income, employment, and debt ratios don't matter. Lenders look at the lease agreement or market rent analysis for the Artesia property, then compare that to PITIA.
Bank statement loans require your financial activity. DSCR loans require the property's financial activity. If you're self-employed buying a home to live in, bank statement is your only play here.
DSCR typically allows unlimited properties with no income recalculation. Bank statement loans still underwrite your full debt-to-income ratio, so buying multiple properties gets harder as your personal debts stack up.
Buying in Artesia to live in it? Bank statement loan. Your personal deposits prove ability to pay. DSCR won't work because you're not collecting rent on your primary residence.
Building a rental portfolio? DSCR usually wins after your first property. You avoid income calculations entirely and can close faster with fewer documents once a lender knows your profile.
Yes. Bank statement loans work for investment properties, but you'll still need to qualify based on personal income and DTI.
No personal income docs. Lenders only verify the rental income through leases or rent surveys, not your pay stubs or tax returns.
Rates vary by borrower profile and market conditions. DSCR often prices slightly higher due to investor risk, but strong rental coverage can offset that.
Yes. You might use a bank statement loan for your primary home and DSCR for rental properties, depending on each deal's structure.
Bank statement loans typically start at 620. DSCR loans usually require 660 minimum, sometimes higher depending on the lender and LTV.