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in Belvedere, CA
Belvedere's luxury real estate market attracts self-employed buyers and investors who don't fit traditional lending boxes. Both bank statement and DSCR loans bypass W-2 income verification, but they serve completely different borrower types.
Bank statement loans work for business owners buying primary or second homes. DSCR loans work for investors buying rental properties based solely on the property's income potential.
Bank statement loans use 12 to 24 months of personal or business bank deposits to calculate your income. Lenders add up your deposits, subtract business expenses (typically 25-50%), then divide by months analyzed.
Most borrowers need 10-20% down, minimum 620 credit score, and statements from the same institution. You can use these for primary homes, second homes, or investment properties in Belvedere's high-value market.
DSCR loans qualify you based entirely on the rental property's income versus its mortgage payment. Lenders calculate a ratio: monthly rent divided by monthly debt (PITI). A ratio above 1.0 means the property covers itself.
No personal income documentation required. No tax returns, no pay stubs, no employment verification. The property's rental income is the only income that matters for approval.
Bank statement loans verify your ability to pay from personal business income. DSCR loans verify the property's ability to pay for itself. One looks at you, the other looks at the asset.
Bank statement loans work for any occupancy type and typically offer lower rates for primary residences. DSCR loans only work for investment properties, with rates priced the same regardless of rental income strength above the minimum threshold.
Choose bank statement loans if you're buying a home to live in and your business deposits show strong income flow. This works for Belvedere buyers purchasing primary or vacation properties who write off significant business expenses.
Choose DSCR if you're acquiring rental property and don't want to document personal income at all. This fits investors buying Belvedere rentals who have complicated tax situations or want to scale their portfolio without income limitations.
Yes, bank statement loans work for investment properties. But if you only want to show rental income without personal documentation, DSCR is the better choice.
Bank statement loans typically offer lower rates for owner-occupied properties. DSCR loans price as investment property regardless of the debt coverage ratio.
Yes, both programs work well in high-value markets. Loan limits vary by lender, but $2-3 million loans are common with sufficient down payment.
No, bank statement loans require 12-24 months of deposits. DSCR loans are the only option if you want zero personal income documentation.
DSCR loans are simpler if the property has strong rental income. Bank statement loans require consistent deposit patterns and calculation of qualifying income.