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in Truckee, CA
Truckee's short-term rental market and seasonal economy create unique borrowing challenges. Traditional lenders don't know what to do with ski lodge operators or vacation rental investors.
Bank statement and DSCR loans both solve income documentation problems, but they target different buyers. One works for business owners buying personal residences; the other funds investment properties based purely on rental income.
Bank statement loans verify income through 12 to 24 months of business or personal bank deposits. Underwriters average your deposits and calculate qualifying income from that total.
These work for Truckee entrepreneurs running seasonal businesses, property managers, or 1099 contractors. You need decent credit—usually 620 minimum—and 10-20% down depending on the lender.
DSCR loans ignore your personal income entirely. Underwriters only care whether the rental property generates enough rent to cover its mortgage payment plus taxes and insurance.
The property needs a debt service coverage ratio above 1.0, meaning rent exceeds the housing payment. Most Truckee investors use these for vacation rentals since lenders accept short-term rental income projections.
Property purpose separates these loans more than anything else. Bank statement loans fund primary homes or second residences for self-employed buyers. DSCR loans only work for investment properties generating rental income.
Income verification follows completely different paths. Bank statement loans still examine your financial life through deposits and credit. DSCR loans treat you like an LLC—the property either pencils or it doesn't.
Choose bank statement loans if you're self-employed and buying a home to live in. Your business shows strong deposits but messy tax returns—this is your path to a Truckee residence.
Pick DSCR loans when buying investment property and you don't want lenders examining your personal finances. The vacation rental generates $4,500 monthly and the mortgage costs $3,800? You're approved regardless of your day job.
Only if it's a second home you personally use, not a pure investment property. Once you're renting it out full-time, you need a DSCR loan instead.
Yes, most lenders use rental comps or appraisal income estimates. They don't require existing lease agreements for purchase transactions.
Rates vary by borrower profile and market conditions. Both typically run 1-2% above conventional rates since they're non-QM products.
Bank statement loans replace tax returns with deposits. DSCR loans skip personal income review entirely—no tax returns needed.
Bank statement loans usually require 620 minimum. DSCR loans often start at 640, though some lenders go lower with larger down payments.