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in Bell Gardens, CA
Bell Gardens investors face a choice between two proven non-QM paths. Bank Statement loans verify income through deposits, while DSCR loans ignore personal income entirely.
Most self-employed buyers pick Bank Statement loans for primary homes. Property investors usually prefer DSCR because rental income does the heavy lifting.
Both skip W-2s and tax returns. The right choice depends on whether you're living in the property or renting it out.
Bank Statement loans pull income from 12 or 24 months of business bank statements. Lenders apply a percentage to your deposits to calculate qualifying income.
You need 10-20% down depending on credit score and property type. Most lenders want 680+ credit, though some go lower.
Works for primary homes, second homes, and investment properties. This flexibility makes it the go-to for self-employed borrowers buying owner-occupied property in Bell Gardens.
DSCR loans qualify you on rental income alone. Lenders divide monthly rent by the mortgage payment to get a ratio.
You need a DSCR of 1.0 or higher for best rates. Ratios below 1.0 still work but cost more.
Minimum 20-25% down for investment properties. Credit requirements start around 660, and lenders never ask about your job or personal income.
This loan only works for rental properties. You cannot use it to buy a home you'll live in.
Bank Statement loans look at your business cash flow. DSCR loans look at the property's cash flow.
Bank Statement requires documentation of your deposits. DSCR requires an appraisal with rent schedule showing market rents.
Bank Statement works for any property you want to buy. DSCR only works if you're keeping it as a rental.
Rates vary by borrower profile and market conditions. DSCR typically prices slightly higher because it ignores personal income completely.
Buy Bank Statement if you're moving into the property. It's also better when your business shows strong deposits but the property's rent barely covers the payment.
Buy DSCR when you're adding to a rental portfolio. This works best when property cash flow is strong but your personal tax returns show write-offs.
Some Bell Gardens investors use Bank Statement for their first property, then switch to DSCR once they start building a portfolio. Each loan serves a distinct purpose.
Yes, Bank Statement loans work for investment properties. But if you're purely investing and not living there, DSCR usually makes more sense.
No. Both programs skip tax returns entirely, which helps self-employed borrowers who write off significant expenses.
Bank Statement often closes quicker because gathering statements is faster than getting rent comps. DSCR requires detailed appraisal analysis.
Yes. DSCR lenders never look at your income, job, or tax returns. Property rent is the only income source that matters.
Bank Statement might work better if your business income is strong. DSCR struggles when rent barely covers the mortgage payment.