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in Beverly Hills, CA
Beverly Hills attracts self-employed entrepreneurs and real estate investors who need flexible financing. Traditional W-2 income verification doesn't work for most high-net-worth borrowers here.
Bank statement loans prove income through deposits. DSCR loans qualify you based on rental income alone. Both skip tax returns, but they serve different borrower types.
Bank statement loans analyze 12 to 24 months of personal or business bank deposits. Lenders calculate income by averaging monthly deposits, then apply a percentage based on your business type.
These work best for self-employed borrowers buying a primary residence or second home. You need consistent deposits and typically 10-20% down. Credit scores start around 620, but 680+ gets better terms.
DSCR loans qualify you based entirely on the property's rental income versus its debt obligations. Lenders calculate the debt service coverage ratio by dividing monthly rent by the monthly payment.
These are strictly for investment properties. No personal income verification required at all. You need a DSCR above 1.0 for the best rates, though some lenders accept 0.75 with larger down payments.
Bank statement loans require proving your personal income through deposits. DSCR loans don't care what you earn personally—only what the property generates. That's the fundamental split.
Property type matters. Bank statements work for where you live. DSCR works for what you rent out. Rates vary by borrower profile and market conditions, but DSCR loans often price slightly higher because they ignore your actual ability to cover shortfalls.
Choose bank statement loans if you're self-employed and buying where you'll live. They work for business owners, contractors, and commissioned salespeople who show strong deposits but low taxable income.
Pick DSCR if you're acquiring Beverly Hills rental property and want the simplest approval. Perfect for investors building portfolios, foreign nationals, or anyone who doesn't want to share tax returns. The property's rent needs to cover the payment.
Some lenders allow it, but most bank statement programs are designed for primary residences and second homes. DSCR loans are purpose-built for investment properties and usually price better for that use.
DSCR loans typically close faster because there's no income verification. You skip employment checks, tax return reviews, and CPA letters. Bank statement loans need more documentation review upfront.
DSCR loans work well for foreign nationals since they don't require US tax returns. Bank statement loans usually need US bank accounts with 12-24 months of history, making them harder for international buyers.
Absolutely. Many Beverly Hills investors use bank statement loans for their residence and DSCR loans for rental properties. Each serves a different purpose in your overall financing strategy.
Some lenders accept DSCR ratios down to 0.75 with 25-30% down. You'll pay higher rates. If rent doesn't cover the payment, bank statement loans might work better if you can prove other income.