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in Larkspur, CA
Both loans skip traditional income docs. Neither works for a standard W-2 borrower.
The difference is who they're built for. One serves self-employed buyers. The other serves real estate investors.
Bank Statement Loans verify income using 12 to 24 months of deposits. Lenders average your deposits and apply an expense factor.
This works well for business owners who write off income on taxes. Your tax returns may show a loss — your bank account tells a different story.
DSCR Loans qualify based on the rental property's income — not yours. Lenders look at rent versus the monthly mortgage payment.
A DSCR above 1.0 means the property pays for itself. Many lenders want 1.1 or higher. Your personal income never enters the equation.
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 Larkspur.
Both loans skip traditional income docs. Neither works for a standard W-2 borrower.
The difference is who they're built for. One serves self-employed buyers. The other serves real estate investors.
Bank Statement Loans verify income using 12 to 24 months of deposits. Lenders average your deposits and apply an expense factor.
Bank Statement Loans qualify you as a borrower. DSCR Loans qualify the property. That's the core distinction.
Bank Statement Loans can finance a primary residence in Larkspur. DSCR Loans are investment property only — no owner-occupied deals.
Buying a home in Larkspur to live in? Bank Statement is your path if you're self-employed. DSCR won't qualify owner-occupied purchases.
Buying a rental or investment property in Marin? DSCR is cleaner. You don't need to document personal income at all.
No. DSCR Loans are for investment properties only. For a primary residence, Bank Statement is the Non-QM path.
Most lenders want at least a 620 score. Better credit gets you better pricing.
Most lenders want 1.0 or higher. Many prefer 1.1 to 1.25. Below 1.0 means the rent doesn't cover the payment.
Yes. Some investors use Bank Statement for properties they occupy and DSCR for rentals they don't.
DSCR is often faster. There's no income analysis — just property cash flow. Bank Statement review takes more time.
Often yes, but condo approval depends on the project. Warrantability rules still apply to many Non-QM lenders.