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in Mammoth Lakes, CA
Mammoth Lakes presents unique financing challenges for vacation rental owners and self-employed borrowers. Traditional lenders often reject both groups despite strong income.
Bank statement and DSCR loans solve different problems. One qualifies you based on personal cash flow, the other on rental income alone.
Most Mammoth Lakes buyers need one of these non-QM options because seasonal income doesn't fit standard W-2 verification. Choosing the wrong product means leaving money on the table.
Bank statement loans qualify you using 12 to 24 months of business or personal bank deposits. Lenders average your monthly deposits to calculate income.
You need consistent deposits and decent credit, typically 620 minimum. Most programs allow up to 10 financed properties with 15-25% down.
This works best when you have strong personal cash flow but tax returns show low income. Perfect for lodge owners or contractors who write off most earnings.
DSCR loans ignore your personal income completely. They qualify based only on the property's rental income divided by its mortgage payment.
You need a DSCR ratio above 1.0, meaning rent covers the payment plus taxes and insurance. Most lenders want 20-25% down and 660+ credit.
This loan exists for one purpose: acquiring rental properties without personal income documentation. Your tax returns never enter the conversation.
The core difference is what gets analyzed. Bank statement loans underwrite you as a borrower. DSCR loans underwrite the property as an investment.
Bank statement programs let you buy a primary residence or add another rental. DSCR locks you into investment properties only.
Rate pricing differs too. Bank statement loans typically price 0.25-0.75% higher than DSCR because personal income creates more variables. Rates vary by borrower profile and market conditions.
Documentation burden heavily favors DSCR. You provide a lease and appraisal, done. Bank statement loans require scanning two years of statements across multiple accounts.
Choose DSCR when buying a vacation rental that generates solid rental income. If the property rents for $4,000 monthly and the full payment runs $3,500, you qualify regardless of personal earnings.
Pick bank statement loans when you need to prove personal income for a primary home or the rental income falls short. Self-employed borrowers buying their Mammoth residence almost always use bank statements.
Many investors start with DSCR for their first few rentals because documentation stays minimal. After building a portfolio, they switch to bank statements to access better pricing on stronger properties.
In Mammoth's vacation rental market, most deals favor DSCR if nightly rental projections support a 1.0+ ratio. Short-term rental income typically qualifies using an appraisal rent schedule.
Yes, most DSCR lenders accept short-term rental income using an appraisal with rent comparables. The appraiser calculates expected monthly income based on similar vacation rentals.
DSCR loans typically close 5-7 days faster because you skip personal income documentation. Bank statement loans require reviewing 24 months of deposits across all accounts.
Yes, both programs support cash-out refinancing. DSCR requires the property still cash flows after the new higher payment, bank statements need continued deposit history.
Bank statement loans start at 620, DSCR typically requires 660 minimum. Higher scores unlock better rates and lower down payment requirements on both products.
No, you choose one qualification method per loan. However, you can use DSCR for some properties in your portfolio and bank statements for others simultaneously.
DSCR handles seasonality better because it averages rental income over 12 months. Bank statement loans may struggle if deposits concentrate in ski season only.