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in Los Banos, CA
Both loans skip the standard W-2 income check. That's where the similarity ends.
One works for self-employed buyers. The other qualifies based on rental income alone. Knowing the difference saves time.
Bank statement loans are built for self-employed borrowers. Lenders use 12 to 24 months of deposits — not tax returns — to calculate income.
This works well for business owners who write off heavy expenses. Your taxable income looks low. Your bank account tells a different story.
DSCR loans don't care about your personal income at all. Lenders look at whether the rental property earns enough to cover its own mortgage.
A DSCR of 1.0 means rent equals the payment. Most lenders want 1.1 or higher. Los Banos rents relative to purchase price can make this work.
The core split: bank statement loans are about you, DSCR loans are about the property. One depends on your deposit history. The other depends on rent.
Rates on both run higher than conventional loans. DSCR loans often come with slightly stricter LTV limits on investment properties. Rates vary by borrower profile and market conditions.
Buying a home to live in and self-employed? Bank statement loan. Buying a rental and want your personal income out of the equation? DSCR loan.
Some Los Banos investors use both — a bank statement loan for their primary residence, DSCR loans to build a rental portfolio. These aren't mutually exclusive.
No. DSCR loans are for investment properties only. For a primary residence, a bank statement loan is the non-QM option.
Yes. Most lenders want a 620 or higher. Better credit gets you better pricing.
Most lenders want a DSCR of 1.1 or higher. Some allow 1.0, but expect tighter terms.
Yes. Most DSCR lenders allow LLC vesting. That's one reason investors prefer it for building a portfolio.
DSCR loans often close faster. There's no income analysis — just a rent schedule and an appraisal.
Yes. Expect 20–25% down for DSCR. Bank statement loans for primary homes may allow 10% down depending on the lender.