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in Whittier, CA
Whittier investors and self-employed borrowers often can't qualify through traditional channels. Both bank statement and DSCR loans skip W-2 verification, but they serve different purposes.
Bank statement loans prove your income through deposits. DSCR loans ignore your income entirely and focus on the property's rental potential.
Most Whittier borrowers need one or the other — rarely both. The right choice depends on whether you're buying your home or an investment property.
Bank statement loans calculate income from 12 or 24 months of business or personal bank deposits. Lenders average your deposits and apply a 50% expense ratio to estimate net income.
You can use these loans to buy a primary residence, second home, or investment property in Whittier. Credit minimums typically start at 620, with higher scores unlocking better rates.
Most self-employed borrowers — contractors, consultants, small business owners — use bank statement loans when their tax returns show minimal income. Rates run 1-2% higher than conventional loans. Rates vary by borrower profile and market conditions.
DSCR loans qualify you based on rental income alone. The lender divides projected rent by the mortgage payment (PITI) to get a ratio. Most lenders want 1.0 or higher.
These loans only work for investment properties. You cannot use DSCR financing for a home you'll live in, even part-time.
Whittier investors use DSCR loans when they own multiple rentals and can't show enough personal income to qualify conventionally. No tax returns, no pay stubs, no employment verification. The property either cash flows or it doesn't.
Credit minimums run 620-640 depending on the lender. Rates vary by borrower profile and market conditions, but expect pricing similar to bank statement loans.
The biggest split: bank statement loans care about your income, DSCR loans care about the property's income. If you're self-employed and buying a home to live in, bank statement is your only option.
DSCR loans let you scale a portfolio without hitting debt-to-income limits. You can own ten rentals and still qualify if the next property cash flows. Bank statement loans still count all your debts against your income.
Down payment requirements differ slightly. Bank statement loans often allow 10-15% down on primary residences. DSCR loans typically require 20-25% down, sometimes 30% if the DSCR is under 1.0.
Both loans close in 21-30 days. Both allow cash-out refinances. Both skip the tax return nightmare that kills most self-employed applications.
Choose bank statement loans if you're buying a home to live in or if you're a self-employed investor who wants flexibility. These loans work for any property type as long as you can document deposits.
Choose DSCR if you're building a rental portfolio and the property rents cover the payment. Also pick DSCR if your personal income is too inconsistent to document, even with bank statements.
Some Whittier borrowers start with bank statement loans for their primary residence, then switch to DSCR for later investment purchases. You don't need to pick one strategy forever.
Run the numbers with both options. A strong rental property in Whittier might qualify either way, and pricing can vary enough to matter.
Yes. Bank statement loans work for investment properties, primary homes, and second homes. DSCR loans only work for rentals.
Rates are similar — both run 1-2% above conventional loans. Your credit score and down payment matter more than the loan type. Rates vary by borrower profile and market conditions.
Yes. Expect 6-12 months of reserves depending on credit score and down payment. DSCR loans sometimes require larger reserves for multiple properties.
Not in the same loan. You pick one income verification method. Some lenders offer hybrid programs, but most keep these products separate.
Some lenders approve DSCR as low as 0.75 with larger down payments. You'll pay higher rates and need more reserves.