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in Novato, CA
Both loans skip traditional income docs. That's where the similarity ends.
One serves self-employed buyers. The other serves rental investors. Knowing which fits your deal saves time.
Bank statement loans verify income using 12 to 24 months of deposits. No W-2s, no tax returns.
Self-employed borrowers in Marin often show low taxable income. This loan looks at actual cash flow instead.
DSCR loans qualify based on the rental property's income — not yours. Your personal income doesn't matter.
Lenders calculate the Debt Service Coverage Ratio: monthly rent divided by monthly debt payment. Most lenders want 1.0 or higher.
Bank statement loans are tied to you — your deposits, your income, your DTI. DSCR loans are tied to the property.
Rates vary on both, but DSCR pricing is heavily influenced by the rent-to-payment ratio. Stronger cash flow means better terms. Rates vary by borrower profile and market conditions.
Buying a primary home in Novato as a self-employed borrower? Bank statement is your path.
Buying a Novato rental and want approval based on what the unit produces? That's a DSCR deal. Some investors use both — one for where they live, one for what they own.
No. DSCR is investment property only. For a primary residence, a bank statement loan is the better fit.
Most lenders want at least a 620 score, though stronger profiles get better pricing. Higher credit helps on rate.
Most lenders require 1.0 or above. Some allow below 1.0 with compensating factors like a larger down payment.
Bank statement loans can go as low as 10% down. DSCR loans typically require 20–25% for investment properties.
Yes — if they're buying a rental. DSCR ignores personal income entirely, which can actually be an advantage.
Tell us the property type and how you'll use it. We'll match you to the right program across our lender network.