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in San Clemente, CA
San Clemente attracts two types of non-QM borrowers. Self-employed buyers need income flexibility. Investors need rental property qualification.
Both loan types skip traditional income docs. But they solve different problems for different borrowers.
Bank statement loans qualify you on 12 to 24 months of deposits. Your tax returns stay out of the equation entirely.
These are built for self-employed borrowers. If your write-offs make your taxable income look low, this is your loan.
DSCR loans qualify based on the rental property's cash flow. Your personal income is not part of the equation.
Lenders look at the debt service coverage ratio — rent divided by the mortgage payment. A ratio at or above 1.0 is typically the target.
The core difference is what qualifies you. Bank statement loans look at you. DSCR loans look at the property.
Bank statement loans work for primary residences, second homes, and investment properties. DSCR loans are investment property only.
Buying a San Clemente home to live in? Bank statement is your path if you're self-employed.
Buying a rental or adding to your portfolio? DSCR keeps your personal finances out of underwriting entirely.
Some lenders allow short-term rental income for DSCR. Not all do. We know which wholesale lenders accept Airbnb-style income.
Most lenders want at least 24 months of self-employment history. Some accept 12 months with strong deposits.
Both are non-QM and tend to require 620 to 680 minimum credit. DSCR lenders vary more by property type and ratio.
Yes. A self-employed investor could use a bank statement loan on their primary home and a DSCR loan on a rental.
DSCR loans often close faster. No personal income analysis means less back-and-forth with underwriting.
Both carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.