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in Santa Fe Springs, CA
Santa Fe Springs investors and self-employed buyers face a choice between two powerful non-QM options. Bank statement loans verify income through deposits, while DSCR loans qualify you based solely on rental income.
Both skip W-2s and tax returns entirely. Your choice depends on whether you're buying to live in the property or strictly for investment cash flow.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits to calculate income. Underwriters apply a percentage to your average monthly deposits — typically 50% for businesses, 100% for personal accounts.
You can use these for primary residence, second home, or investment property in Santa Fe Springs. Credit requirements start around 620, though most approvals happen above 660.
This works when you're self-employed with strong cash flow but write off most income on taxes. The lender sees real money moving through your accounts, not what Schedule C reports.
DSCR loans ignore your personal income completely. Underwriters divide projected monthly rent by the total monthly payment to get a ratio.
Most lenders want to see 1.0 or higher, meaning rent covers the full mortgage payment. Some allow 0.75 ratios with larger down payments and strong credit.
You must treat this as an investment property — no living in it yourself. Santa Fe Springs industrial conversions and multi-family properties work well here because rental comps are straightforward to establish.
Local decision guide
Use this comparison to weigh Bank Statement Loans and DSCR Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Santa Fe Springs.
Santa Fe Springs investors and self-employed buyers face a choice between two powerful non-QM options. Bank statement loans verify income through deposits, while DSCR loans qualify you based solely on rental income.
Both skip W-2s and tax returns entirely. Your choice depends on whether you're buying to live in the property or strictly for investment cash flow.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits to calculate income. Underwriters apply a percentage to your average monthly deposits — typically 50% for businesses, 100% for personal accounts.
Bank statement loans require you to show personal cash flow through deposits. DSCR loans only care about the property's rental income versus its payment.
Use bank statements when you're self-employed and buying a home to live in. Use DSCR when you're adding rental property and don't want to show personal income or tax returns.
DSCR typically demands higher down payments — 20% minimum versus 10-15% on bank statement programs. But DSCR completely removes your debt-to-income ratio from the equation.
Choose bank statement loans if you're self-employed and buying a primary residence or second home in Santa Fe Springs. This works for contractors, business owners, and freelancers with solid deposits but aggressive tax deductions.
Choose DSCR if you're buying strictly for rental income and the numbers work. Your personal income, employment status, and existing debt load become irrelevant — only the property's cash flow matters.
Some Santa Fe Springs investors use both programs across different properties. Run the numbers on projected rent and total payment before choosing your path.
Yes, bank statement loans work for investment properties, primary homes, and second homes. You still need to show qualifying income through your deposits.
Most lenders want 1.0 or higher, meaning rent covers the full payment. Lower ratios sometimes work with larger down payments and strong credit.
Rates depend on your full profile. DSCR often prices slightly better when the rental income is strong and the ratio exceeds 1.25.
No, neither program requires tax returns for income verification. That's the entire point of non-QM financing for these scenarios.
Yes, both programs handle purchase and refinance transactions. DSCR refinances work well for pulling equity from rental properties without income documentation.