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in Pico Rivera, CA
Pico Rivera investors and self-employed borrowers often hit a wall with traditional financing. Both bank statement and DSCR loans skip W-2 income verification, but they solve different problems.
Bank statement loans work for business owners buying a primary home or investment property. DSCR loans exist purely for rental investors who want their property income to do the talking.
Bank statement loans use 12 to 24 months of deposits to calculate qualifying income. Lenders apply a percentage (typically 50-75%) to your average monthly deposits to determine what you can borrow.
You can use these for primary homes, second homes, or investment properties in Pico Rivera. Credit minimums start around 620, though better terms kick in above 680.
Expect rates 1-2% above conventional loans. Down payment requirements run 10-20% for primary homes, 15-25% for investment properties depending on credit and deposit strength.
DSCR loans qualify you based on rental income divided by the mortgage payment. A ratio above 1.0 means the rent covers the debt. Most lenders want to see 1.0 or higher, though some go down to 0.75 with larger down payments.
These loans only work for investment properties. You cannot use a DSCR loan for a home you plan to live in, even part-time.
Credit minimums typically start at 640. Down payments range from 20-25% for ratios above 1.0, climbing to 25-30% for weaker ratios. Rates run similar to bank statement loans.
The core split is simple: bank statement loans verify your business income, DSCR loans verify the property's rental income. If you need financing for a home you'll live in, only bank statement works.
DSCR loans move faster because there's no income calculation from statements. You provide a lease or rental appraisal, lender runs the ratio, done. Bank statement loans require an underwriter to analyze deposits and apply percentage factors.
For Pico Rivera rental properties, DSCR often wins if the rent clearly covers the payment. Bank statement makes sense when you're buying a primary residence or the rental numbers are borderline.
Choose bank statement loans if you're self-employed and buying a primary home in Pico Rivera. Also use them for investment properties when you want to combine personal and rental income to qualify for a larger loan amount.
Pick DSCR loans when you're purely investing and the property cash flows well. You don't want to hand over two years of bank statements, and you don't need your personal income in the equation.
Some investors use both: bank statement for their primary residence, DSCR for their rental portfolio. We shop both options across 200+ lenders to find which structure gets you better terms for each property.
No. DSCR loans require the property to be 100% investment use. If you plan to occupy it at all, you need a bank statement loan or another program.
Rates are similar, typically 1-2% above conventional. Your credit score and down payment matter more than the loan type for rate pricing.
Yes. Both bank statement and DSCR loans permit LLC or personal name on title. DSCR loans are especially common with LLC structures.
DSCR loans close faster, often 2-3 weeks. Bank statement loans need 3-4 weeks because underwriters analyze deposit patterns and calculate income.
Yes, with a bank statement loan. DSCR loans ignore your personal income entirely and only look at the property's rental cash flow.