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in Bradbury, CA
Most Bradbury borrowers don't fit traditional lending boxes. Self-employed entrepreneurs need bank statement loans to show income without tax returns.
Real estate investors buying rental properties use DSCR loans that ignore personal income entirely. Both are non-QM options, but they solve completely different problems.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Lenders apply a percentage to your average monthly deposits—typically 50% for businesses, 100% for personal accounts.
This works for self-employed borrowers who write off most income on tax returns. You need consistent deposits, reasonable credit, and usually 10-20% down depending on loan amount and property type.
DSCR loans qualify you based on whether rental income covers the mortgage payment. Lenders calculate a ratio: monthly rent divided by monthly debt service (PITI payment).
A DSCR of 1.0 means rent exactly covers the payment. Most lenders want 1.1 to 1.25. Your personal income doesn't matter—you could earn $50k or $500k, and it's irrelevant to approval.
Bank statement loans focus on your earning capacity. DSCR loans focus on the property's earning capacity. One verifies you make enough money; the other verifies the rental makes enough money.
Bank statement loans work for owner-occupied homes in Bradbury estates. DSCR loans only work for investment properties—you cannot live in the home. Rates vary by borrower profile and market conditions, but DSCR loans typically price slightly higher.
Choose bank statement loans if you're self-employed and buying a home to live in. Also use them for investment properties when you're building a portfolio and want to show strong personal income.
Choose DSCR loans when buying cash-flowing rentals and you don't want to document income. This matters if you have complex tax situations, multiple LLCs, or you're retired with rental income but low taxable earnings.
Yes, bank statement loans work for both primary homes and investment properties. You'll need to show sufficient income from your bank deposits to qualify.
Both typically require 15-25% down depending on credit and property. DSCR loans may require more if the rent-to-payment ratio is tight.
Rates vary by borrower profile and market conditions. Bank statement loans often price slightly better since they verify personal income and capacity to repay.
Yes, neither loan requires tax returns for income qualification. Bank statement loans use deposits; DSCR loans use rental income from appraisals or leases.
Most lenders want 680+ for DSCR loans and 640+ for bank statement loans. Higher scores unlock better rates and terms on both programs.