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in San Anselmo, CA
San Anselmo investors and self-employed borrowers face a choice between two non-QM paths. Bank statement loans verify income through deposits, while DSCR loans qualify you based on rental income alone.
Both skip W-2s and tax returns, but they serve different borrowers. One works for business owners buying primary homes, the other for investors who want their rental property to carry itself.
Bank statement loans analyze 12 to 24 months of business or personal deposits to calculate qualifying income. Lenders apply a percentage to your average monthly deposits—typically 50% for personal accounts, 75% for business accounts.
This option works for self-employed borrowers buying a primary residence, second home, or investment property. Credit requirements start around 620, though most Marin deals need 660+ to get competitive terms.
You'll need 10-20% down depending on property type and credit profile. The bank statements must show consistent deposits without major red flags like frequent NSF fees or negative balances.
DSCR loans ignore your personal income entirely. Lenders divide the property's monthly rent by its monthly debt obligations (mortgage, taxes, insurance, HOA). A ratio above 1.0 means the property pays for itself.
Investment properties only—no primary residences allowed. You can close in an LLC, which keeps the loan off your personal credit and simplifies bookkeeping for portfolios.
Most lenders require 20-25% down and a 660+ credit score. Some allow DSCR ratios below 1.0 with larger down payments, useful for San Anselmo fixer-uppers with rent upside.
No tax returns, no pay stubs, no employment verification. If the rent covers the mortgage, you qualify.
Bank statement loans qualify you based on your business deposits. DSCR loans qualify the property based on its rent. If you're self-employed buying a home to live in, bank statements are your only option between these two.
DSCR loans offer cleaner separation for investors—your debt-to-income ratio doesn't matter, and multiple properties don't stack against your personal qualifying ability. Bank statement loans treat investment purchases like any other mortgage on your credit profile.
Rates run similar on both, typically 1-2% above conventional rates. DSCR loans often have slightly lower rates when the property shows strong cash flow (1.25+ DSCR). Bank statement rates improve with higher credit scores and larger down payments.
Choose bank statement loans if you're self-employed and buying a primary residence or second home in San Anselmo. Your business shows healthy deposits but your tax returns don't reflect true cash flow due to write-offs.
Choose DSCR if you're adding to an investment portfolio and the rental income covers the payment. You want to scale without hitting DTI limits, or you prefer keeping properties under an LLC for liability reasons.
Many Marin investors use both programs—bank statements for their own residence, DSCR for their rental properties. The right choice depends on whether you're living in the property or renting it out.
Yes, bank statement loans work for investment properties. However, DSCR loans often make more sense because they don't add to your personal debt-to-income ratio.
Most lenders want 1.0 or higher, meaning rent covers the full mortgage payment. Some allow ratios down to 0.75 with 25-30% down and strong credit.
DSCR loans commonly close in LLC names. Bank statement loans typically require individual borrowers, though some lenders allow LLC ownership on investment purchases.
Rates are similar, typically 1-2% above conventional. DSCR loans may edge slightly lower when the property shows strong cash flow above 1.25 DSCR.
Yes, borrowers often use bank statement loans for their residence and DSCR loans for rentals. Each property is evaluated independently based on the program requirements.