Loading
in San Marino, CA
San Marino's luxury real estate market attracts both high-earning entrepreneurs and serious real estate investors. Traditional W-2 income verification often blocks these buyers from qualifying, even when they have substantial capital and strong financials.
Bank statement loans serve business owners buying primary or second homes. DSCR loans target investors acquiring rental properties. Both skip tax returns, but they qualify you in completely different ways.
Bank statement loans qualify you based on deposits flowing through your business or personal accounts. Lenders review 12 or 24 months of statements and calculate income using your average monthly deposits minus a standard expense ratio.
You can buy a primary residence, second home, or investment property with this loan type. Most lenders allow up to 90% LTV on primary homes and 85% on investment properties. Credit scores typically need to hit 680 minimum, though some lenders go down to 620.
Rates run 1.5% to 3% above conventional mortgages depending on your profile. The trade-off is speed and flexibility—no tax returns, no explanation of business write-offs, no CPA letters required.
DSCR loans ignore your personal income completely. Instead, lenders qualify the property based on rental income divided by the mortgage payment. A ratio above 1.0 means the rent covers the debt—that's typically what gets approved.
These loans only work for investment properties, never primary residences. You can buy single-family rentals, multi-units up to four units, or even portfolios. LTV caps at 80% for most scenarios, with 75% more common for newer investors.
Credit requirements match bank statement loans—usually 680 minimum. Rates run similar too, about 1.5% to 2.5% above conventional. The key advantage is zero income documentation, which works well for investors with complex tax situations or multiple properties.
Bank statement loans verify your ability to pay using your business cash flow. DSCR loans verify the property's ability to pay using rental income. That fundamental difference drives everything else about how these programs work.
Property type matters most in choosing between them. Buying a home you'll live in? Bank statement is your only option. Buying a rental property? You can use either, but DSCR makes more sense if the rent covers the payment and you'd rather not share bank statements.
Down payment requirements favor bank statement loans slightly. You can go as low as 10% down on a primary residence with strong credit. DSCR loans typically need 20-25% down across the board since lenders take more risk without verifying personal income.
Choose bank statement loans if you're buying a home to live in or you want maximum financing leverage. San Marino business owners buying that $3-4M primary residence typically use this route when their tax returns show low net income due to depreciation and business deductions.
Choose DSCR if you're acquiring rental property and the numbers work. Run the math first: monthly rent divided by total monthly payment (PITI) needs to exceed 1.0. Most San Marino area rentals hit this threshold easily, especially single-family homes.
Some investors qualify for both but prefer DSCR for privacy reasons. You avoid disclosing bank statements, personal income, or employment details. The property stands on its own merits, which keeps your financial picture completely separate from the transaction.
No. DSCR loans only work for investment properties generating rental income. You need a bank statement loan or traditional financing for a primary residence.
Rates are similar—both run 1.5-3% above conventional mortgages. Your credit score and down payment matter more than the specific loan type.
No. Lenders use current market rent or an active lease to calculate the DSCR ratio, even on vacant properties.
Yes. Use bank statement for your primary home and DSCR for rental properties. Many investors run both simultaneously.
Some lenders approve ratios as low as 0.75 with larger down payments. Expect stricter terms and higher rates below 1.0.