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in San Rafael, CA
San Rafael's mix of single-family homes and rental properties attracts both self-employed buyers and real estate investors. Both groups often need non-QM loans, but the right choice depends on whether you're buying a primary residence or an investment property.
Bank statement loans work for self-employed borrowers who can't document traditional W-2 income. DSCR loans ignore your personal income entirely and qualify you based on rental cash flow alone.
Bank statement loans use 12 to 24 months of personal or business bank deposits to calculate your income. Lenders apply a percentage (typically 50-75%) to your average monthly deposits to determine qualifying income.
These loans work for primary residences, second homes, and investment properties in San Rafael. Credit requirements start around 620, with down payments from 10-20% depending on property type and credit profile.
The main advantage: you can buy a home using the income that actually hits your bank account. No tax returns, no P&Ls, no complicated documentation your accountant helped you minimize.
DSCR loans qualify you based on one number: the property's rent divided by its total monthly debt. If the rent covers the mortgage payment, taxes, insurance, and HOA by enough margin, you're approved.
These loans only work for investment properties, not primary residences. Most lenders want a DSCR of 1.0 or higher, meaning the rent at least covers all property expenses.
Your personal income, employment, and tax returns don't matter. Lenders look at the property's rent (from a lease or market rent analysis) and calculate whether it supports the loan. Credit requirements typically start at 640 with 20-25% down.
The fundamental split: bank statement loans care about your income, DSCR loans care about the property's income. If you're self-employed and buying a home to live in, bank statement is your only option between these two.
DSCR loans often have slightly higher rates but simpler documentation. You need a lease agreement or rent appraisal instead of pulling bank statements. Approval speed is usually faster since underwriters aren't analyzing deposits and transactions.
Down payment requirements differ by purpose. Bank statement loans on San Rafael primary homes can go as low as 10% down. DSCR loans typically require 20-25% since they're investment-only products with higher risk profiles.
Choose bank statement loans if you're buying a primary residence or second home in San Rafael. This is also the right call if you're an investor who wants to use your business income to buy rentals and doesn't have existing leases in place.
Choose DSCR if you're buying rental property and want the simplest approval process. These loans shine when you have strong rental comps or existing tenants, and you don't want lenders examining your personal finances.
Many self-employed investors end up using both products for different properties. Bank statement for their San Rafael home, DSCR for the rental duplex they're buying in another neighborhood. We help you structure which loan fits which purchase.
Yes, bank statement loans work for investment properties. DSCR is usually simpler for rentals since it skips personal income verification entirely.
Rates vary by borrower profile and market conditions. Bank statement loans often price slightly better for owner-occupied homes, while DSCR rates reflect investment property risk.
Both are considered full-doc non-QM loans. Bank statement requires more personal financial records, while DSCR focuses purely on property income documentation.
Yes, if you meet credit and down payment requirements. We often structure multiple purchases using different loan products for different properties.
DSCR loans typically close faster since underwriters review less documentation. Bank statement loans require analyzing months of deposits, which adds processing time.