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in Malibu, CA
Malibu's luxury market attracts both high-net-worth entrepreneurs and serious real estate investors. Traditional W-2 income documentation won't work for most buyers here.
Bank statement loans verify income through deposits. DSCR loans ignore your personal income entirely and focus on rent potential.
Both are non-QM products with similar credit requirements. The difference is whether you're buying a primary residence or an investment property.
Bank statement loans qualify you based on 12 to 24 months of business or personal bank deposits. We calculate income by averaging your deposits and applying a percentage based on your business structure.
Self-employed borrowers use these for primary homes, second homes, or investment properties. You need consistent deposits and typically 10-20% down depending on credit and property type.
This works well for Malibu buyers with strong cash flow but complex tax returns. Business owners who write off most income can qualify based on actual deposits instead of adjusted gross income.
DSCR loans qualify you based solely on the rental income a property generates. The debt service coverage ratio compares monthly rent to the monthly mortgage payment.
A DSCR of 1.0 means rent covers the payment. Most lenders want 1.0 to 1.25 depending on credit score and down payment.
These are investment property only. Your personal income, tax returns, and employment don't matter at all. We use an appraisal-based rent estimate or an executed lease to determine cash flow.
Bank statement loans require proof of your income through deposits. DSCR loans don't look at your income at all—just the property's numbers.
Use bank statements for a Malibu primary residence or second home. Use DSCR for a rental property where the rent justifies the loan amount.
Down payments run similar on both—expect 15-25% depending on credit and property details. Rates vary by borrower profile and market conditions but typically fall within a point of each other.
Buying a beachfront home to live in? Bank statement loan. Your business income shows in deposits but not on tax returns.
Buying a Malibu rental as a pure investment play? DSCR loan. You don't need to document income if the property cash flows.
Some investors qualify for both but prefer DSCR to keep personal finances separate. Others need bank statements because the property doesn't hit a 1.0 DSCR and they want to carry it for appreciation.
Yes, bank statement loans work for investment properties. DSCR is usually simpler if the rent covers the payment since you skip income documentation entirely.
Rates vary by borrower profile and market conditions. Both are non-QM products with similar pricing—credit score and down payment matter more than loan type.
Typically yes. Most bank statement and DSCR programs start at 620-640 credit with better pricing at 680+.
Use a bank statement loan instead. You can qualify on your personal income and carry the property even with negative cash flow.
Both take 3-4 weeks on average. DSCR can be faster since there's no income documentation to review.