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in Grass Valley, CA
Grass Valley investors and self-employed borrowers often can't qualify through traditional channels. Bank statement and DSCR loans both skip W-2 verification, but they solve different problems.
Bank statement loans work for business owners buying a primary residence or second home. DSCR loans focus purely on rental property cash flow, ignoring your personal income entirely.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Lenders average your monthly deposits and apply an expense ratio based on your business type.
Most self-employed borrowers show more income through bank statements than tax returns. You can use these loans for primary homes, second homes, or investment properties in Grass Valley.
DSCR loans qualify you based on the property's rental income divided by its debt obligations. If the rent covers the mortgage payment plus taxes and insurance, you can get approved without proving personal income.
These loans only work for investment properties. Lenders don't pull tax returns or bank statements—they just verify the property's rent and run your credit.
The core split is property use. Bank statement loans work when you need to prove business income for any property type. DSCR loans only work for rentals but require zero personal income documentation.
Rates vary by borrower profile and market conditions. DSCR loans often price slightly higher since they ignore your income completely. Bank statement loans price closer to conventional when your deposits show strong cash flow.
Choose bank statement loans if you're self-employed and buying a home to live in. Also use them for rental properties when the rent doesn't fully cover the mortgage but your business income fills the gap.
Choose DSCR loans when the property's rent pays for itself and you want the simplest approval process. This works best for experienced investors with multiple properties who don't want to document personal income.
No, you pick one path. If rent covers the mortgage, DSCR is cleaner. If you need your business income to qualify, use bank statements.
DSCR loans typically close faster since lenders skip income verification. Bank statement loans need 12-24 months of statements reviewed and averaged.
DSCR loans don't require personal tax returns at all. Bank statement loans may request business returns to verify your entity structure.
Yes. Investors often start with bank statement loans then refinance to DSCR once rental income improves and covers debt obligations fully.
Rates vary by borrower profile and market conditions. Bank statement loans often price lower when deposits show consistent strong income.