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in Corte Madera, CA
Corte Madera's competitive real estate market attracts self-employed buyers and investors who don't fit traditional W-2 lending boxes. Both bank statement and DSCR loans solve income verification issues, but they work completely differently.
Bank statement loans qualify you based on your business cash flow. DSCR loans ignore your income entirely and focus only on rental property performance.
Bank statement loans analyze 12 to 24 months of personal or business bank deposits to calculate income. Lenders average your deposits and apply an expense ratio, typically 25% to 50%, to determine qualifying income.
This works for entrepreneurs, freelancers, and business owners buying primary residences or second homes in Marin County. You'll need at least 10% down, credit scores typically 620 or higher, and clean banking records without frequent overdrafts.
The advantage is straightforward: no tax returns, no P&L statements, no CPA letters. Just bank statements showing consistent deposits prove you can afford the mortgage.
DSCR loans qualify you based entirely on rental income the property generates. The lender divides monthly rent by the monthly mortgage payment to get a ratio. Most lenders want 1.0 or higher, meaning rent covers the full payment.
Your personal income, employment, and tax returns are irrelevant. This makes DSCR ideal for investors with strong property portfolios but complex tax situations, retirees living on assets, or anyone who shows low personal income on paper.
Expect 20% to 25% down for investment properties. Credit requirements start around 620, though better terms require 680 or higher. The property underwrites itself.
Purpose drives the choice. Bank statement loans work for homes you'll live in. DSCR loans are strictly for rental properties you won't occupy.
Income source matters. Bank statement examines your business deposits and personal cash flow. DSCR examines only the subject property's rental income, ignoring everything about your financial life.
Documentation differs sharply. Bank statement requires months of deposit history showing consistent cash flow. DSCR requires a lease agreement or rental market analysis, plus property appraisal. Neither asks for tax returns.
Rates vary by borrower profile and market conditions. DSCR typically prices slightly higher because lenders take on more risk with no personal income backstop.
Choose bank statement loans when buying a Corte Madera home you'll live in and you're self-employed with solid deposit history. This works for consultants, contractors, real estate agents, and business owners who write off significant expenses.
Choose DSCR when acquiring rental property and you want to avoid personal income documentation entirely. This fits investors building portfolios, those with complicated tax returns, or buyers who want to scale quickly without employment verification slowing each deal.
Some Corte Madera investors use both programs strategically. Bank statement for their primary residence in Town Park or Christmas Tree Hill. DSCR for rental properties elsewhere in Marin County.
Yes, but DSCR usually makes more sense. Bank statement works for investment properties, but why verify your income when DSCR lets the rental income qualify itself?
Bank statement loans typically price slightly better than DSCR. Rates vary by borrower profile and market conditions, with DSCR carrying more risk premium.
Neither requires tax returns for income verification. That's the core benefit of both programs for borrowers with complex tax situations.
Yes, both programs work for purchase and refinance. DSCR refinances are especially popular for pulling equity from performing rental properties.
Both typically require minimum 620 credit, with better rates at 680+. Higher scores and larger down payments improve pricing on both programs.