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in La Canada Flintridge, CA
La Cañada Flintridge draws both business owners buying primary homes and investors eyeing high-end rentals. Bank Statement Loans work when you need to buy a residence but can't show W-2 income. DSCR Loans qualify you based solely on rental income, ignoring your tax returns entirely.
Both are non-QM products designed for borrowers who don't fit traditional lending boxes. The core difference: one verifies personal income through deposits, the other qualifies you on property cash flow alone.
Bank Statement Loans analyze 12 to 24 months of business or personal bank deposits to calculate income. Underwriters apply a percentage multiplier to your average monthly deposits. This method works for contractors, consultants, and business owners who write off most of their income.
You can use these loans for primary residences, second homes, or investment properties in La Cañada Flintridge. Minimum credit scores typically start at 680. Expect 10% to 20% down and rates about 1% to 2% above conventional mortgages.
DSCR Loans qualify you entirely on the rental property's income potential. Lenders divide projected rent by the mortgage payment to get a ratio. A DSCR of 1.0 means rent covers the payment. Most lenders want 1.1 to 1.25 for approval.
These loans only work for investment properties, never primary residences. You don't provide tax returns, pay stubs, or employment verification. Lenders order an appraisal with a rent schedule to determine market rents. Credit minimums typically start at 660 with 20% to 25% down.
Local decision guide
Use this comparison to weigh Bank Statement Loans and DSCR Loans through local payment fit, eligibility, documentation, and timing before choosing a path in La Canada Flintridge.
La Cañada Flintridge draws both business owners buying primary homes and investors eyeing high-end rentals. Bank Statement Loans work when you need to buy a residence but can't show W-2 income. DSCR Loans qualify you based solely on rental income, ignoring your tax returns entirely.
Both are non-QM products designed for borrowers who don't fit traditional lending boxes. The core difference: one verifies personal income through deposits, the other qualifies you on property cash flow alone.
Bank Statement Loans analyze 12 to 24 months of business or personal bank deposits to calculate income. Underwriters apply a percentage multiplier to your average monthly deposits. This method works for contractors, consultants, and business owners who write off most of their income.
The biggest split: Bank Statement Loans examine your personal cash flow while DSCR Loans ignore you completely and focus on the property. If you're buying a home to live in, Bank Statement is your only option between these two. DSCR is strictly for landlords.
Bank Statement Loans require proof of deposits over two years. DSCR Loans need an appraisal showing market rent covers the debt. Bank Statement works better for self-employed buyers with strong deposit history. DSCR suits investors who want minimal documentation and plan to rent immediately.
Choose Bank Statement Loans if you're self-employed and buying a primary home in La Cañada Flintridge. This program works when your bank deposits prove income but your tax returns don't. It's the path for business owners, freelancers, and commissioned salespeople purchasing where they'll live.
Pick DSCR Loans when buying rental property and you want the simplest approval process. You skip income verification entirely. This works best for investors with multiple properties, those with complex tax situations, or buyers who want to close fast without gathering employment paperwork.
Yes, Bank Statement Loans work for investment properties. But if it's purely a rental, DSCR is simpler since you skip personal income verification entirely.
Usually yes. DSCR typically needs 20-25% down while Bank Statement can go as low as 10% depending on the lender and your profile.
Rates are similar since both are non-QM products. Expect 1-2% above conventional rates, with your credit score and down payment affecting pricing more than loan type.
Absolutely. Use Bank Statement for your primary residence and DSCR for rentals. Many investors in La Cañada Flintridge structure portfolios this way.
DSCR often closes faster since there's no income verification. Bank Statement Loans need time to review 12-24 months of statements and calculate income.