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in Duarte, CA
Both bank statement and DSCR loans skip traditional W-2 verification, but they serve different borrowers. One qualifies you using personal cash flow, the other uses rental income alone.
Duarte investors often face this choice when buying multifamily properties or expanding rental portfolios. The right loan depends on whether you live in the property or run it purely as an investment.
Bank statement loans qualify you based on 12 to 24 months of personal or business bank deposits. Underwriters calculate average monthly income from your statements, not tax returns.
You can use this loan for primary homes, second homes, or investment properties in Duarte. It works best for self-employed borrowers who write off significant expenses and show lower taxable income.
DSCR loans qualify based on the debt service coverage ratio of the rental property itself. Lenders divide monthly rent by the mortgage payment to determine if the property cash flows.
Your personal income never enters the equation. This loan only works for investment properties, not homes you plan to occupy in Duarte.
Bank statement loans examine your financial activity across all income sources. DSCR loans only care about the subject property's rent and expenses.
If you plan to live in the Duarte property, bank statement is your only option. If it's a pure rental and you want to avoid showing personal income, DSCR makes more sense.
Rate and terms vary by borrower profile and market conditions. DSCR loans often have slightly higher rates because lenders carry more risk with no personal income verification.
Choose bank statement loans if you're buying a Duarte home to live in, have consistent deposits, or want lower rates. Choose DSCR if you're an investor scaling a portfolio without showing personal income.
I see bank statement loans work well for local business owners buying near their operations. DSCR fits out-of-state investors or borrowers with complex tax situations who want property income to stand alone.
Yes, bank statement loans work for investment properties. You'll still need to show consistent deposits and meet credit requirements regardless of property use.
Both typically start around 20% down for investment properties. Exact requirements vary by lender and the strength of your application or property cash flow.
DSCR loans often close slightly faster because underwriting skips personal income verification. Bank statement loans need time to review 12-24 months of deposits.
Yes, many investors use bank statement loans for owner-occupied purchases and DSCR loans for pure rentals. Each property qualifies independently based on its use.
Most lenders want 620 minimum for both, but stronger credit unlocks better rates. DSCR lenders may accept slightly lower scores if property cash flow is strong.