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in Glendora, CA
Glendora borrowers with rental properties or self-employment income often hit a wall with traditional loans. Bank statement and DSCR loans both skip W-2 verification, but they serve completely different needs.
Bank statement loans qualify you based on personal cash flow from your business. DSCR loans ignore your income entirely and look only at what the rental property generates.
Bank statement loans use 12 or 24 months of business or personal bank deposits to calculate your income. Underwriters apply a percentage to your average monthly deposits—typically 50% for business accounts, higher for personal accounts.
This works for self-employed borrowers buying primary homes, second homes, or investment properties in Glendora. You need decent credit, usually 620 or higher, and 10-20% down depending on property type.
DSCR loans qualify you based solely on the rental income the property generates. Lenders divide monthly rent by the mortgage payment to get a ratio—1.0 or higher usually gets approved, though some lenders go lower.
Your personal income, tax returns, and employment don't factor into approval. This works exclusively for investment properties in Glendora—you cannot use a DSCR loan for a home you plan to live in.
The biggest split is what qualifies you. Bank statement loans care about your business income—they want to see consistent deposits covering the new mortgage. DSCR loans ignore you entirely and focus on whether the Glendora rental can cover its own payment.
Bank statement loans work for any property type if you're self-employed. DSCR only works for rentals, but it doesn't matter how you earn your personal income—W-2, 1099, or unemployed all qualify the same if the property cash flows.
Choose bank statement if you're self-employed and buying a home to live in, or if you're an investor who wants flexibility across property types. Choose DSCR if you're buying a Glendora rental and the property generates strong rent relative to the mortgage payment.
DSCR makes more sense for investors with multiple properties who don't want personal income scrutinized on every deal. Bank statement fits business owners with solid deposits who need to prove income but can't show traditional pay stubs.
Yes. Bank statement loans work for investment properties if your business income supports the mortgage payment. DSCR might offer better terms if the rental income is strong.
No. DSCR loans skip tax returns and W-2s entirely. Approval depends only on the property's rental income versus the mortgage payment.
Rates vary by borrower profile and market conditions. DSCR rates can be competitive when the property has a strong DSCR ratio above 1.25.
No. DSCR loans are strictly for investment properties. You need a bank statement loan or traditional mortgage for a primary residence.
Bank statement loans need 12-24 months of statements. DSCR loans need a lease agreement or rental appraisal, no personal income docs required.