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in Garden Grove, CA
Both loans skip tax returns entirely. That's where the similarity ends.
Bank Statement loans are built for self-employed borrowers. DSCR loans are built for rental investors. Knowing which one fits your deal saves time.
Bank Statement loans use 12 to 24 months of deposits to prove income. Lenders average your monthly deposits and apply an expense factor.
This works well for business owners who write off everything. Your tax return might show low income. Your bank statements tell the real story.
DSCR loans qualify you based on the property's rent — not your income. Lenders divide the monthly rent by the mortgage payment to get the ratio.
A DSCR of 1.0 means rent covers the payment. Most lenders want 1.1 or higher. Some programs allow ratios below 1.0 with stronger reserves.
Bank Statement loans tie qualification to your personal income. DSCR loans tie it to the property. That's a fundamental difference in how lenders think about risk.
CNBC flagged 30-year conforming rates hitting 6.30% as of March 2026. Non-QM rates run higher. For DSCR investors, that means rent coverage ratios get tighter — run your numbers carefully before locking.
Buying a primary residence or second home in Garden Grove? Bank Statement is your path if you're self-employed and your taxes understate income.
Buying a rental or adding to a portfolio? DSCR removes your personal income from the equation entirely. That matters if you already have multiple financed properties.
Yes. A Bank Statement loan can finance your home while a DSCR loan finances a rental. They qualify separately.
Both typically require 20–25% down. DSCR loans for investment properties often require 25% minimum.
Some lenders accept Airbnb income projections. Not all do. Ask specifically — lender rules vary widely on this.
Technically yes, but DSCR is usually cleaner. It removes personal income scrutiny from an investment purchase entirely.
Most lenders want 620–640 minimum for both. Better scores get better rates — especially on Non-QM products.
DSCR loans commonly close in an LLC. Bank Statement loans usually require individual borrowers, not entities.