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in Los Banos, CA
Los Banos investors and self-employed borrowers often can't get conventional loans. Bank statement and DSCR loans both skip W-2 verification, but they work for completely different situations.
Bank statement loans qualify you on business cash flow. DSCR loans ignore your income entirely and focus on rental property performance.
Choosing wrong costs you months and thousands in fees. Most borrowers need clarity on which path matches their actual situation.
Bank statement loans use 12 to 24 months of personal or business bank deposits to calculate income. Lenders average your monthly deposits, apply an expense ratio, then qualify you like a conventional loan.
This works for self-employed W-9 contractors, business owners, and freelancers who write off most income. You need consistent deposits and decent credit, typically 620 or higher.
Rates run 1-2% above conventional loans. You can buy primary homes, second homes, or investment properties with these programs.
DSCR loans qualify based on rental income divided by the mortgage payment. Lenders ignore your tax returns, pay stubs, and business income completely.
The property must generate enough rent to cover its own debt. Most lenders want a DSCR of 1.0 or higher, meaning rent equals or exceeds the payment.
These work exclusively for investment properties. You cannot use DSCR for a primary residence or second home, only rental real estate.
Bank statement loans look at your business cash flow. DSCR loans look at property cash flow. That's the split that determines which loan you need.
Bank statement works for self-employed buyers purchasing any property type. DSCR only works for investors buying rentals.
DSCR is faster because lenders skip all personal income verification. Bank statement takes longer since underwriters analyze 24 months of deposits line by line.
Credit requirements differ too. Bank statement usually needs 620 minimum. DSCR lenders often allow 660 or higher depending on the property's numbers.
Use bank statement if you're self-employed and buying a home to live in. DSCR won't work because it requires an investment property.
Use DSCR if you're buying a rental and the numbers work. You skip all personal income documentation, which speeds up closing and protects privacy.
Los Banos investors often choose DSCR for single-family rentals near the agricultural belt. Bank statement fits contractors and business owners buying primary homes.
Some borrowers qualify for both. In that case, compare rates and choose based on which property generates stronger rental income versus your business deposits.
No. DSCR requires a pure investment property with rental income. If you live there at all, you need a bank statement or conventional loan.
DSCR typically closes faster because lenders skip personal income verification. Bank statement requires detailed deposit analysis which adds time.
DSCR never requires personal tax returns. Bank statement loans sometimes ask for business returns depending on the lender and deposit patterns.
Rates vary by borrower profile and market conditions. Both are non-QM products priced similarly, usually 1-2% above conventional rates.
Bank statement often allows 10-15% down. DSCR typically requires 20-25% down since it's investment property only.