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in Cudahy, CA
Cudahy investors and self-employed borrowers face the same problem: traditional lenders won't count their real income. Bank statement and DSCR loans both solve this, but they work completely differently.
Bank statement loans verify what you earn through your business deposits. DSCR loans ignore your income entirely and qualify you on what the property earns in rent.
Bank statement loans use 12 or 24 months of business or personal deposits to calculate income. Underwriters average your deposits and apply a write-off percentage to determine qualifying income.
You can use these for primary homes, second homes, or investment properties in Cudahy. Credit minimums start at 620, and you'll need at least 10% down for most programs.
DSCR loans qualify you solely on rental income divided by the property's debt obligations. Lenders want a ratio above 1.0, meaning rent covers the mortgage payment plus taxes and insurance.
Your personal income, job history, and tax returns don't matter. You can close on a Cudahy rental property without proving what you earn elsewhere.
Bank statement loans require you to show business income through deposits. DSCR loans require the property itself to show rental income through an appraisal or lease.
Bank statement works if you need owner occupancy or if Cudahy rents won't cover a full mortgage payment. DSCR works if you have zero documentable income but the property pencils out as a rental.
Choose bank statement if you're buying in Cudahy to live there or if you're self-employed with strong deposits but irregular rental cash flow. Choose DSCR if you're buying purely as an investment and the rent covers the payment.
We see Cudahy investors use DSCR when they own multiple properties and don't want income verification slowing down closings. Self-employed buyers living in the home almost always use bank statement instead.
Yes, bank statement loans work for investment properties. You'll still need to document income through deposits, unlike DSCR which skips that entirely.
Rates vary by borrower profile and market conditions. DSCR pricing depends on the property's cash flow ratio, while bank statement pricing depends on your credit and deposit history.
No. Bank statement loans start at 10% down for some scenarios. DSCR loans typically require 20-25% down minimum.
Bank statement loans can blend with W-2 income if needed. DSCR loans don't consider personal income at all, only rental cash flow from the property.
DSCR usually closes faster because it skips income verification entirely. Bank statement loans need 12-24 months of statements reviewed and underwritten.