Loading
in Fullerton, CA
Both loans skip traditional income docs. But they solve very different problems for very different borrowers.
Bank Statement loans work for self-employed earners. DSCR loans work for rental property investors. Knowing which fits your situation saves time and money.
Bank Statement loans use 12 to 24 months of deposits to calculate income. Lenders look at what actually hits your account — not what your Schedule C shows after deductions.
This loan is built for self-employed borrowers in Fullerton — consultants, business owners, contractors. If your tax returns understate your real income, this is your path.
DSCR loans qualify you based on the rental property's income — not yours. Lenders calculate a ratio: monthly rent divided by monthly mortgage payment.
A DSCR of 1.0 means rent covers the payment. Most lenders want 1.1 or higher. Your personal income, job title, or tax returns never enter the picture.
The biggest difference is what the loan is for. Bank Statement loans finance any property type. DSCR loans are strictly for investment properties generating rental income.
Bankrate's latest lender survey shows mortgage rates at 6.27% — non-QM rates run higher than that. DSCR loans often price tighter than Bank Statement loans for strong-performing rentals. Rates vary by borrower profile and market conditions.
Buying a home to live in — or a second property — as a self-employed borrower? Bank Statement is your loan. Your income is the qualifier.
Buying a Fullerton rental where rent covers the payment? DSCR is cleaner and faster. No digging through personal finances. The property does the work.
No. DSCR loans are for investment properties only. For a primary residence, Bank Statement is the non-QM option.
Most lenders want 660 to 680 minimum for both. Stronger scores get better pricing on non-QM products.
Not always. Some lenders approve on 12 months. The more statements you provide, the stronger your income picture.
Most lenders require 1.1 or higher. A 1.0 is break-even — some lenders allow it with a larger down payment.
Both typically require 10–25% down. DSCR loans often require 20–25% for investment properties.
Yes. If the rent covers the payment, DSCR is simpler. If the property doesn't cash-flow well, Bank Statement may be the better fit.