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in Gardena, CA
Gardena investors and self-employed borrowers often fall outside conventional lending boxes. Bank statement loans and DSCR loans solve different problems with similar tools.
Both are non-QM products that skip W-2 verification. Your income source determines which one works. One is for operators running businesses, the other for property collectors.
Bank statement loans qualify self-employed Gardena borrowers using 12 or 24 months of business or personal bank deposits. Lenders calculate income from average monthly deposits, then apply an expense factor.
You need 10-20% down depending on credit strength. Most programs require 620+ FICO. These loans work for primary homes, second homes, and investment properties when you're the one earning the income.
DSCR loans ignore your personal income entirely. Lenders approve based on whether the Gardena rental property generates enough rent to cover its mortgage payment. The debt service coverage ratio must hit 1.0 or higher for most programs.
These are investment-only. You cannot live in the property. Down payments start at 20-25%. No income docs, no tax returns, no employment verification. The property either pays for itself or it doesn't qualify.
Bank statement loans look at you. DSCR loans look at the property. If you're self-employed and buying a home to live in, only bank statements work. If you're building a rental portfolio and want to keep your personal finances separate, DSCR is the play.
Rates vary by borrower profile and market conditions. Bank statement loans typically carry slightly lower rates because they involve personal income verification. DSCR pricing reflects pure asset-based lending with zero borrower income review.
Choose bank statements if you're self-employed and buying a primary or second home in Gardena. This works for contractors, consultants, business owners who show deposits but write off most income. You need to prove you earn enough to afford the payment.
Choose DSCR if you're buying Gardena rentals and want loan approval tied to property performance, not your tax returns. This fits investors with existing income they don't want to document or portfolio builders scaling without income limits.
Yes, bank statement loans work for investment properties when you're using your business income to qualify. DSCR may offer better terms if the rental income alone supports the mortgage.
Rates vary by borrower profile and market conditions. Bank statement loans generally price slightly better because they include personal income verification versus pure asset-based DSCR lending.
No. DSCR loans qualify on property income only. Lenders never review your tax returns, W-2s, or personal employment. The rental income must cover the mortgage payment.
Most programs require 12-24 months of bank statements. Some lenders accept 12 months if your deposits show strong, consistent income. Newer businesses typically don't qualify.
Most lenders require 1.0 or higher, meaning monthly rent equals or exceeds the mortgage payment. Some programs allow 0.75 DSCR with larger down payments and higher rates.