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in Huntington Beach, CA
Huntington Beach investors and self-employed borrowers often need flexible financing options. Bank Statement Loans and DSCR Loans both offer alternatives to traditional mortgage requirements.
Both are non-QM loans designed for borrowers who don't fit conventional guidelines. Understanding the key differences helps you choose the right loan for your situation in Orange County.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This option works well for business owners whose tax returns don't reflect actual cash flow.
Instead of W-2s or tax returns, lenders analyze deposits to determine qualifying income. This approach helps entrepreneurs and freelancers who write off significant business expenses.
DSCR Loans qualify investors based on a rental property's income rather than personal income. The Debt Service Coverage Ratio measures whether rental income covers the mortgage payment.
These loans are perfect for real estate investors buying income properties in Huntington Beach. Your personal employment and income don't factor into the approval process.
The main difference lies in how income is verified. Bank Statement Loans focus on your personal business income through deposits. DSCR Loans look only at the investment property's rental income potential.
Bank Statement Loans work for primary residences, second homes, and investment properties. DSCR Loans are exclusively for investment properties. Your intended property use determines which loan makes sense.
Rates vary by borrower profile and market conditions. Both programs typically require larger down payments than conventional loans, though specific requirements differ by lender.
Choose Bank Statement Loans if you're self-employed and need financing for any property type. This option works whether you're buying a home to live in or an investment property in Orange County.
Choose DSCR Loans if you're an investor focused solely on rental properties. This option is ideal when you want to avoid personal income documentation entirely and let the property qualify itself.
Consider your borrowing goals and property plans. A local Huntington Beach mortgage broker can help analyze which non-QM option aligns with your investment strategy.
Yes, both Bank Statement and DSCR Loans are available for Huntington Beach properties. Your choice depends on whether you need personal income verification or investment property qualification.
Rates vary by borrower profile and market conditions. Both non-QM options typically have higher rates than conventional loans but offer more flexible qualification standards.
Yes, both Bank Statement and DSCR Loans generally require larger down payments than traditional mortgages. Specific requirements depend on the lender and your situation.
Yes, Bank Statement Loans work for investment properties, primary residences, and second homes. DSCR Loans are only available for investment properties.
DSCR Loans often close faster since they don't require personal income documentation. Bank Statement Loans need 12-24 months of statements reviewed, which can take longer.