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in Fairfax, CA
Bank statement and DSCR loans both skip W-2 verification, but they serve completely different borrowers. One qualifies you based on your business income, the other on rental property cash flow.
Fairfax borrowers often need both — bank statement loans for primary residences, DSCR for Marin County investment properties. Knowing when to use which program saves you time and gets better terms.
Bank statement loans use 12 or 24 months of business or personal bank deposits to calculate your income. Lenders apply a percentage to your average monthly deposits — typically 50% for businesses, 100% for personal accounts.
This program works for self-employed Fairfax residents buying a primary home, second home, or investment property. You need decent credit — usually 620 minimum — and 10-20% down depending on property type.
Rates run 1-2% higher than conventional loans. You're paying for flexibility — no tax returns, no P&Ls, just proof your business generates consistent cash flow.
DSCR loans ignore your personal income entirely. The property's rent must cover the mortgage payment — usually at a ratio of 1.0 to 1.25 times the monthly PITIA.
These loans are for investors only. No owner-occupied properties allowed. Fairfax doesn't have huge rental inventory, but Marin County investors use DSCR for multifamily or single-family rentals across the region.
You need 20-25% down and 660+ credit. Rates are similar to bank statement loans, but approval hinges on appraisal rent figures, not your business performance.
Bank statement loans qualify you as a borrower. DSCR loans qualify the property as an investment. If you're buying a Fairfax home to live in, bank statement is your only option here.
DSCR won't ask for bank statements or tax returns — just an appraisal showing strong rent potential. Bank statement loans need your deposit history but let you buy any property type, not just rentals.
Down payment and credit requirements overlap, but DSCR typically wants more skin in the game. Bank statement programs can go as low as 10% down for primary homes; DSCR rarely dips below 20%.
Use a bank statement loan if you're self-employed and buying a home to live in. This is the path for Fairfax business owners, freelancers, or 1099 contractors who don't want to show tax returns.
Choose DSCR if you're buying rental property and want to skip income documentation altogether. It's cleaner for investors with multiple properties or complex tax situations where personal income doesn't tell the full story.
Some borrowers use both — bank statement for their primary residence, DSCR for their rental portfolio. We shop both programs across 200+ lenders to find which structure saves you money.
Yes. Bank statement loans work for investment properties, but DSCR often gets better terms if the rent covers the payment. We compare both.
No. DSCR ignores your income completely. Approval depends on the property's rent versus the mortgage payment, verified by appraisal.
Rates are similar, usually 1-2% above conventional. DSCR can edge lower if the property shows strong rent coverage and you put 25% down.
Yes. Neither program requires tax returns. Bank statement loans need deposit records; DSCR needs an appraisal with rent analysis.
Bank statement loans start at 620 credit. DSCR typically requires 660 minimum, though some lenders go to 640 with larger down payments.