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in Bellflower, CA
Bellflower buyers with non-traditional income face a choice between two solid Non-QM options. Bank statement loans work for self-employed borrowers buying primary homes or investment properties.
DSCR loans ignore your personal income entirely and qualify based on rental property cash flow. Most Bellflower investors use DSCR when they want to scale their portfolio without hitting DTI walls.
Bank statement loans calculate income from 12 or 24 months of business or personal bank deposits. Lenders apply expense ratios between 25% and 50% depending on your business type.
These work for Bellflower buyers with strong cash flow but messy tax returns. You need decent credit (usually 620+) and 10-20% down depending on property type and occupancy.
DSCR loans qualify you based on whether rental income covers the mortgage payment. Lenders want a ratio above 1.0, meaning rent exceeds PITIA (principal, interest, taxes, insurance, association fees).
Your personal income and employment never enter the equation. These loans work for Bellflower landlords buying second, third, or tenth rental properties without maxing out personal debt ratios.
Bank statement loans check your personal credit and income. DSCR loans check the property's ability to carry itself. If you're self-employed buying a primary residence in Bellflower, bank statements are your only option here.
DSCR only works for rental properties. Rates vary by borrower profile and market conditions, but DSCR typically prices 0.25-0.75% higher than bank statement loans because underwriting is simpler and faster.
Use bank statement loans if you're self-employed and buying a home to live in. Use DSCR if you're an investor who wants to keep buying properties without personal income getting in the way.
Many Bellflower investors start with bank statements on their first rental, then switch to DSCR once they own multiple properties. DSCR scales better because each property stands alone without affecting your DTI.
Yes. Bank statement loans work for primary homes, second homes, and investment properties. DSCR only works for rentals.
Bank statement loans typically price 0.25-0.75% lower than DSCR. Rates vary by borrower profile and market conditions.
Neither requires tax returns for income calculation. DSCR may request them to verify property ownership and rental history.
No. Bank statement loans verify income through deposits but still check personal credit and employment. DSCR skips all personal income verification.
DSCR typically closes faster because underwriting only evaluates the property and rent potential. Bank statements require more borrower documentation review.