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in Seal Beach, CA
Seal Beach investors and self-employed professionals have two powerful non-QM financing options. Bank Statement Loans and DSCR Loans each serve different borrower needs with flexible qualification standards.
Both programs skip traditional W-2 income verification. This opens doors for entrepreneurs, business owners, and real estate investors in Orange County. Understanding the key differences helps you choose the right path.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. Lenders analyze deposits to calculate your qualifying income. This works well for business owners with fluctuating revenue.
These loans let you buy a primary residence, second home, or investment property. Your bank statements tell your financial story when tax returns show lower income. Rates vary by borrower profile and market conditions.
DSCR Loans qualify investors based on a rental property's income rather than personal income. The property must generate enough rent to cover the mortgage payment. Lenders calculate the debt service coverage ratio to approve the loan.
These loans are exclusively for investment properties, not primary residences. You don't need to show tax returns or pay stubs. The rental income does the heavy lifting for qualification. Rates vary by borrower profile and market conditions.
The biggest difference is what qualifies you. Bank Statement Loans focus on your personal income through bank deposits. DSCR Loans focus solely on the investment property's rental income potential.
Property type matters too. Bank Statement Loans work for any property type including your primary home. DSCR Loans only finance rental investment properties. Your goal determines which program fits best.
Choose Bank Statement Loans if you're self-employed and buying any property type. This includes primary homes, vacation properties, or rentals. Your business bank statements prove you can afford the payments.
Choose DSCR Loans if you're building a rental portfolio in Seal Beach. Personal income doesn't matter with this option. The property's rent must cover the mortgage. This works great for investors with multiple properties or complex tax returns.
Yes, both work for rental properties. Bank Statement Loans use your personal income while DSCR Loans use only the property's rental income to qualify you.
DSCR Loans are often simpler since they ignore personal income entirely. Bank Statement Loans require detailed analysis of your deposits over 12-24 months.
Non-QM loans typically have higher rates than conventional options. Rates vary by borrower profile and market conditions. The flexibility often justifies the cost.
No, DSCR Loans are exclusively for investment properties. Use a Bank Statement Loan if you're self-employed and buying a primary residence.
Most lenders require 12 to 24 months of business or personal bank statements. The longer period helps establish consistent income patterns for approval.