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in Fairfax, CA
Fairfax attracts self-employed creatives and real estate investors alike. Both groups need financing — but very different financing.
Bank statement loans prove income through deposits. DSCR loans skip your income entirely and qualify on rental cash flow.
Bank statement loans were built for self-employed borrowers. Lenders use 12 to 24 months of deposits instead of tax returns.
This matters in Fairfax. Freelancers, business owners, and contractors often write off enough income to kill a conventional approval.
Your deposits tell the real story. Lenders average them out and use that figure to qualify you.
DSCR loans qualify based on the property, not you. Lenders look at rental income versus the monthly payment.
A DSCR above 1.0 means the rent covers the mortgage. Many lenders want 1.25 or higher for full approval.
Your personal income, job history, and tax returns stay out of it. The deal lives or dies on rental numbers.
Local decision guide
Use this comparison to weigh Bank Statement Loans and DSCR Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Fairfax.
Fairfax attracts self-employed creatives and real estate investors alike. Both groups need financing — but very different financing.
Bank statement loans prove income through deposits. DSCR loans skip your income entirely and qualify on rental cash flow.
Bank statement loans were built for self-employed borrowers. Lenders use 12 to 24 months of deposits instead of tax returns.
The core split is purpose. Bank statement loans are for buying or refinancing your primary residence or second home. DSCR loans are for investment properties only.
Bank statement loans scrutinize your income history. DSCR loans scrutinize the property's rent roll.
Both carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.
If you're self-employed and buying a home to live in, bank statement is your path. Tax returns alone won't cut it with most lenders.
If you're purchasing a rental in Marin and the numbers pencil out, DSCR is cleaner and faster. No income docs means less friction.
Some Fairfax investors use both — a bank statement loan on their home and DSCR on their rentals. That combination works well.
No. DSCR loans are for investment properties only. For a primary residence, bank statement or conventional loans are your options.
Most lenders want 12 months minimum. Some programs require 24 months for a stronger income average.
Most lenders require a DSCR of 1.0 or higher. A ratio of 1.25 gives you more program options and better terms.
Yes. DSCR loans skip income verification but still require a credit check. Most lenders want at least a 620.
Both are non-QM and priced above conventional rates. Rates vary by borrower profile and market conditions.
Some lenders allow it, but DSCR is usually cleaner for rentals. Bank statement works best for owner-occupied purchases.