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in West Hollywood, CA
West Hollywood buyers fall into two camps: self-employed pros buying primary homes and investors targeting rental units. Bank statement loans work for the first group. DSCR loans work for the second.
Both are non-QM products that skip W-2 verification. The difference is how you qualify. One uses your business deposits. The other uses rental income from the property itself.
Bank statement loans use 12 or 24 months of business or personal bank deposits to calculate income. Lenders apply a percentage to your average monthly deposits — typically 50% for business accounts, 100% for personal.
This works for self-employed borrowers buying in West Hollywood who write off most income. You need 10-20% down depending on credit and property type. Rates run 1-2% above conventional.
DSCR loans ignore your personal income entirely. Approval hinges on one number: the property's monthly rent divided by its monthly debt payment. Most lenders want a ratio of 1.0 or higher.
You can close on a West Hollywood rental without showing tax returns, pay stubs, or employment history. Down payment starts at 20-25%. Rates typically match bank statement loans or run slightly higher.
The biggest split: occupancy. Bank statement loans fund owner-occupied homes, second homes, and investment properties. DSCR loans only fund rentals. You cannot live in a DSCR-financed property.
Income source differs too. Bank statements prove you earn enough from your business. DSCR proves the property earns enough from rent. If you have strong deposits but a weak rental market, choose bank statements. If rents are solid but your business shows low taxable income, choose DSCR.
Go bank statement if you're buying a West Hollywood home to live in or hold as a second property. This is the only non-QM path for owner-occupied purchases when your tax returns don't reflect true income.
Go DSCR if you're buying a rental and want the cleanest process. You skip income docs, employment verification, and debt-to-income calculations. Just show the property generates enough rent to cover the mortgage.
Yes. Bank statement loans work for investment properties, primary homes, and second homes. DSCR loans only cover rentals.
Rates vary by borrower profile and market conditions. Both typically price 1-2% above conventional loans with similar terms.
Bank statement loans start at 10% down for strong profiles. DSCR loans typically require 20-25% minimum.
Yes. DSCR lenders don't review personal income, tax returns, or employment. Only the property's rental income matters.
Some lenders approve ratios as low as 0.75 with higher down payments and rates. Most prefer 1.0 or above for standard pricing.