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in Industry, CA
Industry sits at the center of LA County's industrial and commercial corridor, where many borrowers own businesses or rental properties. Traditional W-2 income verification doesn't work for most deals here.
Bank statement and DSCR loans both skip tax returns, but they solve different problems. One qualifies you on business deposits, the other on rental cash flow.
Bank statement loans let self-employed borrowers qualify using 12 or 24 months of business or personal bank deposits. Lenders calculate income from your average monthly deposits, typically using 50-75% of the total.
This works for business owners, freelancers, and contractors who write off most income on taxes. You need 10-20% down, 620+ credit, and consistent deposits without major gaps or red flags.
DSCR loans ignore your personal income entirely. Approval depends on one number: does the property's rent cover the mortgage payment plus taxes and insurance by at least 1.0x to 1.25x?
This is an investor-only product. You can't use it on a primary residence. Most lenders want 20-25% down, 660+ credit, and market-rate rent that justifies the purchase price.
Bank statement loans look at your income. DSCR loans look at the property's income. That's the entire difference. If you're buying a rental but have strong business deposits, you might qualify for both.
Rates vary by borrower profile and market conditions. DSCR loans often price slightly better because the underwriting is simpler—no income calc, just rent divided by payment. Bank statement loans require more documentation and manual review.
Choose bank statement if you're buying a primary home or vacation property, or if your rental doesn't cash flow yet. Choose DSCR if you're a pure investor with a property that rents well but your personal tax returns are a mess.
Most Industry buyers using these loans are either self-employed business owners near the commercial district or investors adding to rental portfolios. If you own both a business and rental properties, run both scenarios. The DSCR might approve you faster with less hassle.
No, you pick one per property. If you're buying multiple rentals, you could use DSCR on some and bank statement on others depending on which approves easier.
DSCR loans typically price 0.25-0.50% lower because underwriting is simpler. Rates vary by borrower profile and market conditions.
No. That's the point of both programs. Bank statement uses deposits, DSCR uses property rent. Neither requires personal or business tax returns.
Bank statement loans start at 620. DSCR loans typically need 660 minimum, though some lenders go to 640 with higher rates.
Yes, if the property isn't rented yet. Lenders order a rent appraisal showing market rent, then calculate DSCR from that number.