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in Tiburon, CA
Tiburon's $2M+ median home prices attract two types of non-QM borrowers: self-employed residents and rental property investors. Each needs different income documentation.
Bank statement loans verify personal income through deposits. DSCR loans ignore your income entirely and qualify you based on rent alone.
Both bypass W-2 requirements, but they solve completely different problems. Your borrower type determines which path makes sense.
Bank statement loans use 12 or 24 months of business or personal bank deposits to calculate income. Lenders average your deposits and apply an expense ratio—typically 50% for personal accounts, 25% for business.
You need 10-20% down depending on loan amount and credit score. Rates run 1-2% higher than conventional because you're not providing tax returns.
This works for Tiburon business owners who write off most income. Your bank deposits show higher cash flow than your tax returns reflect.
DSCR loans qualify based on rental income divided by the mortgage payment (PITI). A ratio above 1.0 means rent covers the payment. Most lenders approve ratios as low as 0.75.
Your personal income doesn't matter. No tax returns, no pay stubs, no employment verification. The property either cash flows or it doesn't.
Tiburon investors buying second homes or rental properties use DSCR when they don't want to show personal income. Minimum 20-25% down required.
Bank statement loans are for owner-occupied homes. DSCR loans are for investment properties only—you can't live there.
Bank statements require proving your business generates cash. DSCR requires proving the property generates rent. Completely different documentation.
DSCR rates run slightly higher than bank statement loans because lenders take more risk on pure investment deals. Expect another 0.25-0.5% premium.
Credit score minimums differ too. Bank statement lenders want 640+. DSCR lenders often approve 620+ if the property cash flows well.
Choose bank statement loans if you're buying a Tiburon home to live in and you're self-employed. You need to prove your business generates income through deposits.
Choose DSCR if you're buying rental property and want to avoid showing tax returns. The property must generate enough rent to cover 75-100% of the payment.
Some Tiburon buyers use both—bank statement for their residence, DSCR for their rental portfolio. We see this often with high-net-worth clients managing multiple properties.
No. Bank statement loans are for owner-occupied homes only. Use DSCR for investment properties since it qualifies based on rental income.
Bank statement loans typically price 0.25-0.5% lower because they're owner-occupied. Both run 1-2% above conventional rates. Rates vary by borrower profile and market conditions.
Yes. We've closed both loan types on properties over $3M in Tiburon. Down payment percentage increases with loan amount regardless of program.
Some bank statement lenders allow it, but most don't. If rental income is key to qualifying, DSCR makes more sense for that property.
DSCR usually closes faster—14 to 21 days. No personal income verification speeds underwriting. Bank statements take 21 to 30 days for deposit analysis.