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in Burbank, CA
Burbank's mix of owner-occupied homes and investment properties creates demand for both bank statement and DSCR loans. Self-employed buyers need one path, real estate investors need another.
Both are non-QM products that skip W-2 verification. The difference comes down to whether you're buying to live in or rent out.
Bank statement loans use 12 or 24 months of personal or business bank deposits to calculate income. Lenders average your deposits, apply an expense ratio, and determine qualifying income.
This works for self-employed borrowers buying primary residences, second homes, or investment properties in Burbank. You need 10-20% down and credit scores typically 620 or higher.
The loan looks at your cash flow, not your tax returns. That matters for business owners who write off everything and show minimal taxable income.
DSCR loans qualify you based on the rental property's income, not yours. The lender calculates a debt service coverage ratio by dividing expected rent by the mortgage payment.
A DSCR of 1.0 means rent covers the payment. Most lenders want 1.0 to 1.25. No tax returns, no pay stubs, no employment verification required.
This only works for investment properties. You can't live in the property. Burbank multifamily and single-family rentals both qualify if the numbers work.
Bank statement loans care about your income. DSCR loans don't. That's the core split. If you're self-employed buying a home to live in, bank statement is your only option.
DSCR requires more down, usually 20-25%. Bank statement can go as low as 10% on owner-occupied properties. DSCR rates run slightly higher because there's no personal income backstop.
Bank statement underwriting takes longer since lenders analyze months of deposits. DSCR is faster because it's just math on rental income and payment. For Burbank investors buying multiple properties, DSCR scales better.
If you're self-employed and buying in Burbank to live there, bank statement is the play. No other loan type will approve you without W-2s or full tax returns showing adequate income.
If you're buying rental property and want the simplest approval, DSCR wins. Your personal income, tax situation, and employment don't matter. Just show the rent covers the payment.
Some scenarios overlap. A self-employed buyer purchasing a Burbank duplex to house hack could use either loan. Bank statement if you need lower down payment. DSCR if your rental income hits the ratio and you want zero personal scrutiny.
Yes. Bank statement loans work for investment properties. You'll need 15-25% down and your deposits must support the income calculation.
No. DSCR loans qualify purely on rental income versus debt. Lenders don't ask for tax returns, pay stubs, or employment verification.
DSCR typically closes faster. Analyzing 24 months of bank statements takes longer than calculating a debt service coverage ratio.
Yes. Most lenders accept a rent schedule or appraisal with market rent estimate if the property is vacant or you're buying it.
Bank statement usually requires 620 minimum. DSCR lenders often want 640-660 for best pricing. Both are case-by-case.