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in Manhattan Beach, CA
Manhattan Beach investors often need financing that traditional W-2 income can't support. Bank statement loans verify income through deposits, while DSCR loans ignore personal income entirely.
Both programs are non-QM products designed for non-traditional borrowers. The right choice depends on whether you're buying your residence or an investment property.
Bank statement loans analyze 12 to 24 months of business or personal deposits to calculate income. Lenders typically apply a 50% expense ratio to your average monthly deposits.
This program works for self-employed borrowers buying a primary residence, second home, or investment property. You need 10-20% down depending on credit score and property type.
Most lenders require 620+ credit and want to see consistent deposits. Large one-time deposits get excluded from income calculations.
DSCR loans qualify borrowers based solely on a property's rental income versus its debt obligations. Lenders calculate the ratio by dividing monthly rent by the mortgage payment including taxes and insurance.
You need a DSCR of at least 1.0, though some lenders go down to 0.75 with higher rates. This loan only works for investment properties, not primary residences or second homes.
No personal income documentation required. Lenders don't pull tax returns, bank statements, or employment verification.
Bank statement loans require proving personal income through deposits. DSCR loans don't care about your income at all—only the property's rental performance.
Property type is the biggest divider. Bank statement loans work for any property you want to buy. DSCR loans are strictly for rental investments.
Down payment requirements differ too. Bank statement loans start at 10% down for strong borrowers. DSCR loans typically need 20-25% down minimum.
Choose bank statement loans if you're buying a primary residence in Manhattan Beach or need more flexible property type options. Self-employed borrowers with strong deposit history get the best terms.
Pick DSCR loans when buying rental properties and you want to avoid income documentation entirely. This works best for investors with multiple properties or those whose personal income doesn't support traditional qualification.
Manhattan Beach rental properties often generate strong cash flow, making DSCR loans viable. Beach proximity and school district drive consistent rental demand.
Yes, bank statement loans work for investment properties. However, DSCR loans often offer better rates for pure rental investments since they qualify on property income.
Most lenders require 1.0 minimum, meaning rent covers your full mortgage payment. Some programs accept 0.75 DSCR with higher rates and larger down payments.
Rates vary by borrower profile and market conditions. DSCR loans typically price slightly better than bank statement loans for investment properties with strong rental income.
Yes, both bank statement and DSCR loans offer cash-out refinance options. DSCR cash-out is popular for investors pulling equity to buy additional properties.
DSCR loans don't count other properties in qualification since they ignore personal debt-to-income. Bank statement loans will consider your full debt profile when qualifying.