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in Lakewood, CA
Both bank statement and DSCR loans skip W-2 verification, but they solve different problems. One qualifies you based on your business income, the other ignores your income entirely.
Lakewood investors and self-employed borrowers often need both loan types in their toolkit. The right choice depends on whether you're buying your own residence or a rental property.
Bank statement loans qualify you using 12 to 24 months of personal or business bank deposits. Lenders average your monthly deposits and apply an expense ratio to determine qualifying income.
This works for self-employed Lakewood residents buying a primary home, second home, or investment property. You prove income through deposit patterns, not tax returns that show writeoffs.
DSCR loans qualify based solely on the rental property's income potential. The lender divides expected monthly rent by the mortgage payment to calculate debt service coverage ratio.
Your personal income, tax returns, and employment don't matter at all. A Lakewood duplex that rents for enough to cover its mortgage can qualify even if you show zero personal income.
The fundamental difference is what gets underwritten. Bank statement loans underwrite you and your business deposits. DSCR loans underwrite the property's rental income and ignore you completely.
Bank statement loans work for any property type you'll occupy or rent. DSCR loans only work for investment properties. If you're buying a Lakewood primary residence, DSCR isn't an option.
Use bank statement loans when buying a Lakewood home you'll live in or when your business shows strong deposits. Use DSCR when acquiring rental properties and you want to avoid income documentation entirely.
Many investors use both strategically. Bank statement for their primary residence, DSCR for building a rental portfolio. The loans serve different purposes and don't compete with each other.
Yes, you can have a bank statement loan on your Lakewood residence and DSCR loans on rental properties simultaneously. They use different qualifying methods that don't conflict.
Rates vary by borrower profile and market conditions. Bank statement loans for owner-occupied homes typically price better than DSCR investment property loans.
DSCR loans typically require 20-25% down minimum. Bank statement loans may allow 10-15% down for primary homes depending on credit and reserves.
DSCR loans often close faster since there's no income documentation. Bank statement loans need 12-24 months of statements reviewed and analyzed.
You can move into a DSCR-financed property, but you took an investment property loan with investment property pricing. Refinancing to owner-occupied rates would require new qualifying.