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in Gustine, CA
Self-employed buyers and investors in Gustine face different income documentation challenges. Bank statement loans prove income through deposits, while DSCR loans ignore personal income entirely.
Most traditional lenders can't handle either scenario. These non-QM programs give you alternative paths to financing when W-2s don't tell your financial story.
Bank statement loans analyze 12 to 24 months of business or personal account deposits to calculate qualifying income. Lenders typically count 50-75% of average monthly deposits as income, depending on your business expenses.
You need 10-20% down and credit scores starting around 600. The rate premium over conventional runs 1-2 percentage points, but you're buying with real cash flow instead of artificially low tax returns.
This works for contractors, real estate agents, restaurant owners, and anyone who writes off substantial business expenses. If your bank account shows strong deposits but your 1040 looks modest, this is your lane.
DSCR loans qualify you based solely on the property's rental income versus its mortgage payment. Lenders want a debt service coverage ratio of at least 1.0, meaning rent covers the full payment including taxes and insurance.
Your personal income, employment, and tax returns don't matter at all. You can have zero W-2 income and still qualify if the property cash flows. Most programs require 20-25% down with credit scores from 620.
This is the investment property play for Gustine rentals. If you're acquiring income property and the numbers work, DSCR ignores your personal financial situation completely.
Bank statement loans are for primary residences, second homes, and investment properties when you need to prove self-employment income. DSCR loans are investment property only and never look at your personal income.
Bank statement requires detailed account records and underwriters calculate income from deposits. DSCR just needs a lease agreement or rent appraisal showing the property generates enough income to cover the payment.
Down payments differ too. Bank statement loans start at 10% down for strong borrowers. DSCR consistently requires 20-25% because the property carries more underwriting weight than the borrower.
Choose bank statement loans when you're self-employed and buying a home to live in. If you're a business owner in Gustine who writes off expenses and needs to qualify based on actual cash flow, this is the obvious path.
Choose DSCR when you're buying rental property and don't want income verification at all. Real estate investors adding to their portfolio prefer DSCR because it's faster, requires less documentation, and scales easily across multiple properties.
Some buyers could use either program. A self-employed investor buying a Gustine rental could go bank statement or DSCR. Run both scenarios—sometimes bank statement delivers better rates if your income calculation is strong.
Yes, bank statement loans work for investment properties. However, DSCR is usually easier since it skips personal income verification entirely.
Rates vary by borrower profile and market conditions. Bank statement can be slightly better for strong income documentation, but DSCR is competitive when property cash flow is solid.
Yes, expect 6-12 months of reserves for either program. DSCR loans often require reserves calculated per property in your portfolio.
Bank statement loans don't require tax returns for income calculation. DSCR loans don't review personal income at all, so returns aren't part of underwriting.
Bank statement lenders typically want 12-24 months of statements. DSCR doesn't care about business age since it qualifies on property income only.