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in Aliso Viejo, CA
Both loans skip W-2s and tax returns. That's where the similarity ends.
One is built for self-employed buyers. The other is built for rental investors. Knowing which fits your deal saves time.
Bank Statement Loans use 12 to 24 months of deposits to prove your income. Lenders average those deposits and calculate a usable income figure.
This loan is made for self-employed borrowers. Business owners, freelancers, and consultants in Aliso Viejo use it to buy primary homes or second homes.
DSCR Loans qualify based on the rental property's income — not yours. Lenders divide the monthly rent by the mortgage payment to get the DSCR ratio.
A ratio at or above 1.0 means the rent covers the debt. Many lenders want 1.1 or higher. Your personal income never enters the equation.
Bank Statement Loans look at you. DSCR Loans look at the property. That single difference changes everything about what you need to bring to closing.
Bank Statement Loans work for owner-occupied purchases. DSCR Loans are investment only. You cannot use a DSCR loan to buy a home you plan to live in.
Buying a place to live in Aliso Viejo and you're self-employed? Bank Statement is your path. It proves income without handing over two years of tax returns.
Buying a rental in Orange County and want the numbers to stand on their own? Use DSCR. It scales well if you're building a portfolio and don't want personal income scrutinized every deal.
No. DSCR loans are for investment properties only. For a primary residence, you'd need a Bank Statement loan or a conventional program.
Most Non-QM lenders want at least a 620 for both programs. Higher scores get better pricing. Rates vary by borrower profile and market conditions.
Typically yes — 10% to 20% down is common. Exact requirements depend on the lender and your overall borrower profile.
Most lenders require 1.0 or higher. Some want 1.1 to 1.25. A ratio below 1.0 means rent doesn't fully cover the payment.
Yes. A self-employed borrower can use a Bank Statement loan on their primary home and a DSCR loan on a rental. They serve different purposes.
DSCR loans often close faster. There's less income documentation to underwrite. Bank Statement loans require lenders to analyze months of deposit history.