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in Ukiah, CA
Ukiah's housing market runs on a mix of primary residences and investment properties. Traditional W-2 income verification doesn't work for everyone here.
Bank statement and DSCR loans both skip tax returns, but they serve different borrowers. One qualifies you on personal cash flow, the other on rental income.
Bank statement loans use 12-24 months of business or personal bank deposits to calculate your income. Lenders average your monthly deposits and apply that for qualification.
These work for business owners, contractors, and freelancers who write off most income. You need decent credit and reserves, but your tax return doesn't matter.
DSCR loans ignore your personal income completely. The lender only cares whether the property's rental income covers the mortgage payment.
Ratio above 1.0 means rent exceeds the payment. Most lenders want 1.0 to 1.25 minimum. Your W-2, 1099, or business income never enters the equation.
Bank statement loans qualify you as a borrower. DSCR loans qualify the property. This distinction changes everything about who should use which program.
Bank statements work for owner-occupied homes in Ukiah's residential neighborhoods. DSCR only works for rental properties. Rates vary by borrower profile and market conditions, but DSCR typically prices slightly better for strong properties.
Buying a home to live in around Ukiah? Bank statement loan is your only option between these two. DSCR doesn't allow owner occupancy.
Buying a rental property? Run the numbers. If the property cash flows well, DSCR is cleaner because you never submit personal financials. If your personal deposits are strong but the rental math is tight, bank statements give you more flexibility.
Yes. Bank statement loans work for investment properties and primary homes. You qualify on your deposits, not the property's rent.
No. DSCR loans skip all personal income docs. The lender only reviews the property's lease and appraisal to calculate debt coverage.
Rates vary by borrower profile and market conditions. DSCR typically prices 0.25-0.50% better when the property has strong rental income.
You use one program per property. Some investors use bank statements for their residence and DSCR for rentals across different deals.
Both typically require 620 minimum. Some DSCR lenders go to 660 for properties with ratios below 1.0.