Loading
in Glendale, CA
Glendale's mix of residential neighborhoods and investment properties creates demand for both bank statement and DSCR loans. Both are non-QM products that skip W-2 verification, but they solve different problems.
Bank statement loans work for self-employed buyers purchasing a primary residence. DSCR loans qualify investors based on rental income alone, ignoring personal tax returns entirely.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Lenders apply an expense ratio to estimate profit, typically 50% for personal accounts or 25% for business accounts.
This works for 1099 contractors, freelancers, and small business owners who write off most income. You can buy a primary home, second home, or investment property up to $3-4 million in most cases.
DSCR loans qualify you based on a rental property's income versus its total debt. If the property generates enough rent to cover the mortgage, you can get approved without showing personal income or tax returns.
The debt service coverage ratio compares monthly rent to the full PITIA payment. Most lenders want a ratio of 1.0 or higher, meaning rent covers the entire payment. Some allow ratios as low as 0.75 with larger down payments.
Bank statement loans look at your income. DSCR loans ignore your income entirely and focus only on the property's rental numbers. That's the core difference.
Rates on both run 1-2% above conventional, but DSCR loans often price slightly better because the underwriting is simpler. Bank statement loans require more documentation even though they're non-QM products.
Use bank statement loans when buying a home to live in and you can't document income traditionally. Use DSCR when buying rental property and you don't want to show tax returns or deal with debt-to-income calculations.
Self-employed buyers in Glendale planning to occupy the property almost always need bank statement loans. Investors adding to a portfolio typically choose DSCR because it's cleaner and scales better across multiple properties.
Yes, but DSCR loans usually make more sense for pure rentals. Bank statement loans work best when you need to qualify based on self-employment income for owner-occupied homes.
DSCR loans often price 0.25-0.50% better because underwriting is simpler. Rates vary by borrower profile and market conditions, so compare both options with current quotes.
Minimum down payments run 15-20% for both. DSCR loans may require 20-25% if the rent-to-payment ratio is below 1.0, depending on the lender.
Yes. DSCR loans never require personal tax returns. Bank statement loans skip tax returns but need 12-24 months of bank deposits instead.
DSCR loans typically close faster because they require less borrower documentation. You only need an appraisal with rent schedule and proof of down payment funds.