Loading
in Sausalito, CA
Sausalito's waterfront properties attract both self-employed buyers and real estate investors. Bank statement and DSCR loans serve different purposes despite both being non-QM options.
Bank statement loans work for buyers who'll live in the property. DSCR loans are strictly for rental investments where the property income matters more than yours.
Bank statement loans use 12 to 24 months of deposits to calculate income. Lenders average your deposits and apply a percentage based on your business structure—typically 50% for sole proprietors or 75% for S-corps.
You can buy a primary residence, second home, or investment property. Most self-employed borrowers in Sausalito use these when tax returns show low income but bank accounts tell the real story.
Expect rates 0.5% to 1.5% higher than conventional loans. Credit score minimums run 640 to 680 depending on down payment and property type.
DSCR loans ignore your personal income completely. Lenders divide the property's monthly rent by its monthly debt to get a ratio—1.0 or higher usually qualifies.
The property must be an investment rental. No owner occupancy allowed, which rules out most Sausalito buyers looking for their primary waterfront home.
You'll need 20% to 25% down minimum. Rates run similar to bank statement loans but qualification is faster since lenders skip tax returns and pay stubs entirely.
The main split is occupancy. Bank statement loans let you buy the Sausalito home you'll actually live in. DSCR requires you to rent it out.
Income sources differ completely. Bank statement lenders care about your deposits and business cash flow. DSCR lenders only look at what rent the property generates against its mortgage payment.
Bank statement loans take longer to process because underwriters analyze months of transactions. DSCR moves faster—provide a lease and appraisal showing market rent, and you're mostly done.
Choose bank statement loans if you're buying a home to live in or want flexibility on property use. Self-employed professionals buying in Sausalito's hillside neighborhoods almost always go this route.
Pick DSCR if you're an investor who doesn't want to show personal tax returns or if you're buying purely for rental income. This works for out-of-area investors acquiring Sausalito properties sight-unseen.
Some borrowers qualify for both but should still pick based on intent. Planning to live there even part-time? Bank statement. Strict rental play? DSCR wins on simplicity.
No. DSCR loans require the property to be a rental investment. Second homes need bank statement or conventional financing.
Rates run similar for both, typically 0.5-1.5% above conventional. Your credit score and down payment matter more than loan type.
DSCR loans skip tax returns entirely. Bank statement loans may require them for review but won't use them to calculate income.
Yes, but you'd need to refinance. DSCR loans are originated as investment properties and can't be occupied at closing.
DSCR is simpler if the property's rent covers the mortgage. Bank statement requires strong deposit history and business documentation.