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in Santa Clarita, CA
Santa Clarita's housing market draws both self-employed business owners and rental property investors. Both groups often can't qualify through traditional income documentation.
Bank Statement and DSCR loans solve different problems. One qualifies you on personal cash flow. The other only cares if the rental property pays for itself.
Bank Statement loans let you qualify using 12 or 24 months of business or personal bank deposits. Lenders calculate your income based on total deposits minus a standard expense ratio.
Most programs accept 50-75% of your average monthly deposits as qualifying income. Credit scores typically start at 620, with 10-20% down required depending on profile.
DSCR loans qualify you based on the rental property's monthly income divided by its monthly debt. A ratio above 1.0 means rent covers the mortgage payment.
Your personal income doesn't matter at all. Lenders care only whether the property generates enough rent. Most require 20-25% down with credit scores starting at 640.
Bank Statement loans analyze your personal cash flow. DSCR loans ignore you entirely and focus on property performance. If you're self-employed buying a primary home, Bank Statement is your only option.
DSCR works for investors who want to keep buying rentals without income caps. Each property stands alone. With Bank Statements, your total debt-to-income ratio still applies across all properties.
Choose Bank Statement if you're self-employed and buying where you'll live. Also use it if you're an investor but the property won't cash flow yet—your business income can carry the deal.
Go DSCR if you're buying pure rental property that generates market-rate rent. Your tax returns show low income but you own profitable rentals? DSCR ignores your 1040 entirely.
Yes, but only if your personal bank deposits can cover the mortgage payment. DSCR makes more sense if the property rent already supports the loan.
Most lenders go down to 0.75 DSCR, meaning rent covers 75% of the mortgage. You'll need larger down payment and higher rates below 1.0.
No. That's the whole point. Lenders use your actual bank deposits instead of what you reported to the IRS.
Yes. DSCR loans don't pull tax returns, W-2s, or pay stubs. You just need a lease agreement showing market rent for the property.
DSCR often moves quicker because there's less borrower documentation. Bank Statement loans need 12-24 months of statements reviewed and analyzed.