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in San Juan Capistrano, CA
San Juan Capistrano borrowers have access to two powerful non-QM loan options. Each serves different needs for those who don't fit traditional lending boxes.
Bank Statement Loans help self-employed individuals use business income to qualify. DSCR Loans let investors buy rental properties based solely on rental income.
Both loan types offer flexibility beyond conventional mortgages. Understanding the key differences helps you choose the best path for your financing goals.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This approach replaces traditional tax returns and W-2 forms.
Business owners, freelancers, and contractors benefit most from this option. Lenders analyze deposits to calculate qualifying income for your San Juan Capistrano property.
Rates vary by borrower profile and market conditions. Credit score, down payment, and business deposit consistency all influence your final terms.
DSCR Loans qualify investors based on a rental property's income rather than personal income. The debt service coverage ratio measures if rent covers the mortgage payment.
Your personal tax returns don't matter with this loan type. Only the investment property's rental income potential determines qualification in San Juan Capistrano.
Rates vary by borrower profile and market conditions. Property type, DSCR ratio, and down payment size affect pricing for these investment loans.
The main difference lies in what income qualifies you. Bank Statement Loans focus on your business earnings while DSCR Loans focus on property rental income.
Bank Statement Loans work for primary homes, second homes, and investment properties. DSCR Loans only apply to investment properties generating rental income.
Your credit profile matters differently for each loan type. Bank Statement Loans examine your personal financial history more closely than DSCR Loans do.
Down payment requirements can vary between both options. Your specific situation and the lender's guidelines determine the minimum amount needed in San Juan Capistrano.
Choose Bank Statement Loans if you're self-employed and buying a home to live in. This option also works for investors who want to use their business income.
Choose DSCR Loans if you're buying San Juan Capistrano rental property and prefer not to disclose personal income. This streamlines the process for serious investors.
Consider your long-term goals when deciding between these options. A mortgage broker can analyze your specific situation and recommend the best fit for you.
No, you choose one loan type per property. However, you could use Bank Statement Loans for one property and DSCR Loans for another investment property.
Rates vary by borrower profile and market conditions. Both are non-QM loans with similar pricing. Your credit, down payment, and property details determine your rate.
Yes, both typically require credit scores of 620 or higher. Better credit scores qualify for more favorable terms and lower interest rates with either option.
Down payments typically range from 15% to 25% for both loan types. DSCR Loans may require more for investment properties depending on the rental income ratio.
Yes, first-time investors can use DSCR Loans in San Juan Capistrano. You don't need previous landlord experience since qualification is based on property income potential.