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in Temple City, CA
Temple City borrowers who don't fit conventional boxes have two strong non-QM options. Bank statement loans work for self-employed buyers using their own income. DSCR loans work for investors buying rental properties based on the property's cash flow.
Both skip W-2 verification, but they serve completely different purposes. One qualifies you on what you deposit. The other qualifies you on what the property generates. Picking the wrong one costs you time and kills deals that should close.
Bank statement loans use 12 or 24 months of personal or business bank deposits to calculate your income. Lenders average your deposits and apply a write-off percentage, typically 25% to 50%. The net figure becomes your qualifying income.
You need at least 10% to 15% down in Temple City. Credit requirements start at 620, though 660+ gets better pricing. This loan works for business owners, freelancers, and gig workers buying their primary residence or a second home.
DSCR loans ignore your personal income entirely. Underwriters divide the property's monthly rent by its monthly debt obligation. That ratio, the DSCR, determines approval. A ratio of 1.0 or higher means the rent covers the mortgage payment.
You typically need 20% to 25% down on Temple City investment properties. Credit starts at 620, but stronger scores unlock better terms. This loan works for landlords, flippers converting to rentals, and out-of-state investors who want simple qualification.
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 Temple City.
Temple City borrowers who don't fit conventional boxes have two strong non-QM options. Bank statement loans work for self-employed buyers using their own income. DSCR loans work for investors buying rental properties based on the property's cash flow.
Both skip W-2 verification, but they serve completely different purposes. One qualifies you on what you deposit. The other qualifies you on what the property generates. Picking the wrong one costs you time and kills deals that should close.
Bank statement loans use 12 or 24 months of personal or business bank deposits to calculate your income. Lenders average your deposits and apply a write-off percentage, typically 25% to 50%. The net figure becomes your qualifying income.
Bank statement loans require proving your income exists through deposits. DSCR loans don't care what you earn—only what the property earns. If you're buying a home to live in, bank statement is your only option. If you're buying a rental, DSCR is usually cleaner.
Rates on bank statement loans run 1% to 2% higher than conventional for owner-occupied deals. DSCR rates run similar, but investors compare them to portfolio loans, not Fannie Mae. Bank statement needs consistent deposits. DSCR needs a lease or rent appraisal showing market rent.
Choose bank statement if you're self-employed and buying a home to live in. Your deposits prove you can afford the payment. Choose DSCR if you're buying a Temple City rental and don't want to prove personal income. The property's rent handles the underwriting.
Some borrowers qualify for both on a rental purchase. DSCR usually wins because it's faster and doesn't penalize business write-offs. But if the rental income is weak and your personal income is strong, bank statement might stretch your buying power. We run both scenarios and show you the numbers.
Some lenders allow it, but DSCR is cleaner for rentals. Bank statement qualifies you on personal income. DSCR qualifies on the property's rent and skips the deposit analysis entirely.
No. DSCR loans don't verify personal income at all. You provide a lease or the appraiser estimates market rent. Lenders use that number to calculate the debt service coverage ratio.
Both run 1% to 2% above conventional rates. Your credit score and down payment matter more than the loan type. DSCR pricing improves with higher DSCR ratios, usually at 1.25 or better.
Yes, if it's a rental. We compare both options when the property works as an investment. DSCR usually closes faster because it skips deposit reviews and expense calculations.
Bank statement loans average your deposits over 12 or 24 months. Spikes don't help much—lenders want consistency. If deposits vary wildly, DSCR on a rental property avoids the issue completely.