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in Maywood, CA
Both bank statement and DSCR loans skip traditional W-2 verification, but they serve completely different borrowers. One proves income through your business accounts, the other ignores your income entirely.
In Maywood's compact rental market, choosing the wrong loan type costs you time and money. Self-employed buyers need bank statements. Pure investors need DSCR.
Bank statement loans use 12 to 24 months of deposits to calculate qualifying income. Lenders take total deposits, subtract business expenses, and verify you earn enough to afford the mortgage.
These work for self-employed borrowers buying primary homes, second homes, or investment properties. You need consistent deposits and a business that shows profit through your accounts.
DSCR loans qualify you based solely on the property's rental income divided by its debt obligation. Your personal income, tax returns, and employment don't matter at all.
These are investment-only loans. You cannot use DSCR for a primary residence or second home. The property must generate rental income or be rentable.
Bank statement loans verify your income exists. DSCR loans don't care about your income at all. That's the fundamental split between these programs.
Occupancy rules differ completely. Bank statements work for any occupancy type. DSCR requires investment properties only. Rates vary by borrower profile and market conditions, but DSCR typically prices higher due to investor risk.
Choose bank statement loans if you're self-employed and buying a home to live in. Also use them for investment properties when your personal income is strong but not documented traditionally.
Choose DSCR when you're buying pure rentals and either don't want to share personal financials or your income is complicated. DSCR works for high-income W-2 earners diversifying into Maywood rentals without mixing employment docs into the file.
Yes, bank statement loans work for investment properties, second homes, and primary residences. They're more flexible on occupancy than DSCR.
No, DSCR loans don't require your personal tax returns or any proof of personal income. They qualify purely on the rental property's cash flow.
Bank statement loans typically price better than DSCR for the same property. Rates vary by borrower profile and market conditions.
Yes, you can use bank statements for one property and DSCR for another. Many investors use both programs across their portfolio.
Both typically require 620 minimum credit. Some bank statement lenders go to 600 with compensating factors.