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in Lynwood, CA
Lynwood investors and self-employed buyers face the same problem: traditional lenders won't approve them. Bank statement and DSCR loans both solve this, but they work completely differently.
One qualifies you on business cash flow. The other ignores your income entirely and looks only at the property's rent. Choosing wrong means wasting time on a loan you won't qualify for.
Bank statement loans replace W-2s with 12 to 24 months of business or personal bank deposits. Lenders average your monthly deposits, apply a percentage (usually 50-75%), and that becomes your qualifying income.
This works for Lynwood self-employed buyers who can't document income traditionally. You need decent credit (usually 620+) and 10-20% down, but you can buy a primary residence, second home, or investment property.
DSCR loans never look at your income. Instead, lenders divide the property's monthly rent by its monthly debt payment (mortgage, taxes, insurance). If that ratio hits 1.0 or higher, you qualify.
You can't live in the property—DSCR is investment-only. But if you're buying Lynwood rentals and your personal income is messy or nonexistent, DSCR ignores all of it. The property either cash flows or it doesn't.
The decision point is simple: are you living in the property? If yes, you need bank statement. DSCR doesn't allow owner-occupancy. If it's a pure rental, DSCR usually beats bank statement because it doesn't care about your tax write-offs.
Bank statement loans penalize aggressive write-offs since they look at your deposits. DSCR ignores your business entirely. Rates vary by borrower profile and market conditions, but DSCR typically prices slightly higher due to investment property risk.
Choose bank statement if you're self-employed and buying a Lynwood home to live in. Also use it for rentals if the property doesn't generate enough rent to hit a 1.0 DSCR—your personal income can fill the gap.
Choose DSCR if you're buying Lynwood investment property and the rent covers the debt. It's cleaner, faster, and your personal finances stay private. Just confirm the numbers work before you make an offer.
Yes, bank statement loans work for investment properties. But if the rent covers the mortgage, DSCR is usually easier since it skips personal income review entirely.
Most lenders require 1.0 or higher, meaning rent equals or exceeds the debt payment. Some allow 0.75 with larger down payments and higher rates.
Rates vary by borrower profile and market conditions. Bank statement typically prices slightly better for owner-occupied purchases due to lower risk.
Bank statement loans don't require tax returns for income verification. DSCR loans don't look at personal income at all, so returns aren't part of qualification.
Most DSCR lenders require 620+ credit, same as bank statement loans. A few go down to 600 with higher rates and larger down payments.