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in Ross, CA
Ross buyers often juggle self-employment income with investment properties. Bank statement and DSCR loans solve different problems for the same market.
Bank statement loans verify your personal income through deposits. DSCR loans ignore your income entirely and focus on rental cash flow.
Both bypass W-2 requirements, but choosing wrong costs you rate and approval odds. Here's how each works in Marin's competitive market.
Bank statement loans calculate income from 12 or 24 months of business or personal bank deposits. Lenders average your monthly deposits and apply expense ratios.
You can buy primary homes, second homes, or investment properties. Credit minimums start at 620, though 680+ gets better rates.
Most lenders allow 90% LTV on primary homes in Ross. Investment properties max at 80% LTV, requiring 20% down minimum.
DSCR loans qualify you based on rental income divided by mortgage payment. If rent covers the payment, you're approved regardless of personal income.
Investment properties only—no primary or second homes. Your tax returns and employment don't matter to underwriting at all.
Most programs require 20-25% down. Credit minimums sit at 640, with better pricing above 700.
Bank statement loans underwrite you as a borrower. DSCR loans underwrite the property as an asset. That's the core split.
Bank statement requires proving income through deposits. DSCR requires proving rent covers debt through lease agreements or market rent appraisals.
Rates on bank statement loans run 0.5-1.5% above conventional. DSCR rates sit about 1-2% higher, but require less personal documentation.
Pick bank statement loans if you're buying a home to live in or vacation property. Your deposit history is strong, but tax returns understate income.
Pick DSCR if you're buying rental property and don't want to document personal income. Works especially well for investors with multiple rentals or complex tax situations.
Ross investment properties often rent high enough to pass DSCR requirements. But if you need personal residence financing, bank statement is your only non-QM path.
Yes. You can use a bank statement loan for your Ross home and DSCR loans for rental properties. They're separate approvals.
Bank statement loans typically price 0.5-1% lower than DSCR. Both cost more than conventional loans. Rates vary by borrower profile and market conditions.
Bank statement loans may require one year of returns. DSCR loans skip tax returns entirely, using only rental income documentation.
Bank statement allows 10% down on primary homes, 20% on investment properties. DSCR requires 20-25% down on all investment properties.
Yes, both work for purchase and refinance. DSCR cash-out refinances are popular for pulling equity from rental portfolios.