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in Larkspur, CA
Larkspur's median home price sits well above $1.5 million. Traditional W-2 income verification doesn't work for many buyers here — self-employed professionals and real estate investors dominate this market.
Bank statement and DSCR loans both skip tax returns, but they serve different buyers. One qualifies you based on personal cash flow. The other looks only at the property's rental income.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Lenders add up your monthly deposits, take an average, and apply that as qualifying income.
This works for self-employed borrowers who write off most of their taxable income. You're buying a primary residence, second home, or investment property — but you're qualifying as the borrower, not the asset.
Expect to put down 10-20% depending on credit and property type. Rates run 1-2% higher than conventional. Most lenders require 620+ credit and solid reserves.
DSCR loans ignore your personal income entirely. The property must generate enough rent to cover the mortgage payment, taxes, insurance, and HOA fees — usually 1.0x to 1.25x coverage depending on the lender.
You can close in an LLC. You don't provide tax returns or pay stubs. The underwriter orders a rent schedule or appraisal with rental analysis and does the math from there.
Most DSCR lenders want 20-25% down. Credit requirements start around 640. This is strictly for investment properties — you cannot live in the home.
Bank statement loans underwrite you. DSCR loans underwrite the property. That's the core split.
If you're self-employed and buying a home to live in, bank statement is your only play. DSCR won't work because you're not renting it out.
If you're buying a Larkspur rental and have messy personal financials — or just want to keep personal income off the file — DSCR is cleaner. You need strong projected rent to make the ratio work.
Down payment and rates are similar. DSCR sometimes requires slightly more cash down. Both loan types price based on risk — the more unusual your scenario, the higher the rate.
Use bank statement if you're buying a primary or second home in Larkspur and can show 12+ months of strong deposits. It's also fine for rental properties if you want flexibility on occupancy type later.
Use DSCR if you're an investor buying strictly for rental income and want the cleanest possible file. DSCR also works if you're stacking multiple investment properties — no DTI calculation means your other mortgages don't hurt you.
Both loans close in 30-45 days with the right prep. Make sure your broker has access to multiple non-QM lenders. Pricing and guidelines vary significantly across lenders on these products.
Yes. Bank statement loans work for investment properties. You qualify based on your personal income, so rental income from the property is a bonus but not required.
No. DSCR loans skip tax returns and income verification entirely. The property's rental income is the only qualifying factor.
Rates are similar, typically 1-2% above conventional. Pricing depends on down payment, credit score, and property type more than loan program.
Yes. DSCR loans allow LLC ownership. Bank statement loans typically require individual borrower names on title.
Bank statement loans usually start at 620. DSCR loans typically require 640 minimum, though some lenders go lower with higher down payments.
The rent must cover 1.0-1.25 times your mortgage payment, taxes, insurance, and HOA. An appraiser provides the rent estimate during underwriting.