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in Walnut, CA
Both bank statement and DSCR loans skip traditional W-2 verification, but they solve different problems. One proves your business income. The other ignores your personal income entirely.
Walnut buyers use bank statement loans to buy primary residences when tax write-offs crush their tax returns. Investors choose DSCR when the rental income supports the property without personal qualification.
Bank statement loans analyze 12 or 24 months of business deposits to calculate income. Lenders apply an expense factor—typically 25% to 50%—to account for business costs you didn't write off.
You can buy a primary residence, second home, or investment property. Credit minimums start around 620, though 680+ unlocks better pricing. HousingWire reported that Rate's RateFi now lets borrowers count crypto holdings as reserves—useful if you keep business assets in digital form.
DSCR loans qualify you based on the property's rental income divided by its debt payment. A ratio above 1.0 means rent covers the mortgage. Some lenders approve ratios as low as 0.75 if you compensate with larger down payments.
Your personal income never enters the equation. No tax returns, no pay stubs, no employment verification. This works for investors with strong property cash flow but complex personal finances.
Bank statement loans verify you earn enough through your business. DSCR loans verify the property earns enough on its own. The first requires you to show business activity. The second doesn't care what you do for work.
Rates run similar—both typically 1-2 points above conventional. Bank statement loans let you buy a home to live in. DSCR restricts you to rental properties only. Your choice depends on whether you're housing yourself or building a portfolio.
Choose bank statement if you're self-employed and buying a home in Walnut to live in. Your business generates solid deposits, but tax deductions make your AGI look weak. This loan looks past your 1040.
Choose DSCR if you're adding rental properties and your personal tax situation is messy—or you just want approval speed. You're betting on the property's rental strength, not your W-2. For Walnut investors eyeing cash-flowing properties, DSCR skips the personal income paperwork entirely.
No. DSCR loans require the property to be rented out. For primary residences, bank statement loans work if you're self-employed.
Both start around 620, but DSCR lenders often prefer 680+ for stronger pricing. Credit matters equally for both programs.
Yes. Bank statement typically needs 10-20% down, DSCR usually 20-25%. Both require more skin in the game than standard loans.
Sometimes. If you're buying a rental and self-employed, you could choose either path. DSCR is faster since it skips personal income review.
DSCR usually wins. No personal income verification means less documentation and quicker underwriting once the property appraisal comes back.