Loading
in Dos Palos, CA
Dos Palos borrowers who can't verify income through W-2s have two strong non-QM options. Bank statement loans work for self-employed business owners buying a primary residence or second home.
DSCR loans ignore your personal income entirely. They qualify investment properties based on rental cash flow alone, making them ideal for landlords with complex tax returns.
Both programs skip traditional employment verification. The right choice depends on whether you're buying a home to live in or an income property.
Bank statement loans use 12 or 24 months of business or personal bank statements to calculate income. Lenders average your deposits, apply a percentage based on your business structure, and use that figure for qualification.
You can buy a primary residence, second home, or investment property. Most programs require 10-20% down, depending on credit score and property type.
These loans work best for business owners with steady deposits but aggressive write-offs. Your bank statements show the real cash flow that tax returns hide.
DSCR loans qualify you based on the property's rental income, not yours. Lenders calculate the debt service coverage ratio by dividing monthly rent by the mortgage payment.
A DSCR of 1.0 means rent covers the payment exactly. Most lenders want 1.0 or higher, though some approve deals down to 0.75 with larger down payments.
Investment properties only—no primary residences. You can close in an LLC, making these loans popular with investors building portfolios across multiple entities.
Bank statement loans verify your income through deposits. DSCR loans don't care what you earn—they only check if rent covers the mortgage.
Property type matters. Bank statement loans work for any occupancy type including primary residence. DSCR loans are strictly for investment properties you won't live in.
Down payment requirements overlap but DSCR loans often need more equity upfront. Bank statement loans start at 10% down while DSCR loans typically require 15-25%.
Credit score minimums are similar—most lenders want 620 or higher for either program. Rates vary by borrower profile and market conditions, but both run 1-2 points above conventional loans.
Choose bank statement loans if you're buying a home to live in or a second home. These loans qualify based on your business income, making them ideal for self-employed borrowers with strong cash flow but complex tax situations.
Choose DSCR loans if you're buying rental property and want to avoid personal income verification entirely. Your tax returns, employment history, and DTI ratio don't matter—only the property's rental income.
Some Dos Palos investors use both programs. They buy a primary residence with a bank statement loan while growing their rental portfolio with DSCR loans on each investment property.
If you're self-employed and buying an investment property, you could qualify for either. Bank statement loans let you use your business income. DSCR loans ignore your income and focus only on rent.
Yes, bank statement loans work for investment properties. But if you don't need to verify personal income, DSCR loans are usually simpler since they only look at rental income.
Rates vary by borrower profile and market conditions, but both typically run 1-2% above conventional loans. Your credit score and down payment matter more than the program type.
Not for the property you're buying. Lenders use market rent analysis or a signed lease to determine income, even on vacant properties.
Yes, most DSCR lenders allow LLC ownership. Bank statement loans typically require personal ownership, though some lenders make exceptions.
Most lenders require 620 minimum for both programs. Stronger credit scores—680 or higher—unlock better rates and lower down payment options.
Both take 3-5 weeks on average. Bank statement loans require more documentation review, while DSCR loans focus on rental analysis and appraisal.