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in Tustin, CA
Tustin borrowers have access to flexible financing beyond traditional mortgages. Bank Statement Loans and DSCR Loans offer unique paths to homeownership and investment.
Both are non-QM loans designed for borrowers who don't fit conventional guidelines. Understanding the differences helps you choose the right option 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 freelancers, business owners, and contractors in Tustin.
Instead of tax returns and W-2s, lenders review your bank deposits to determine income. This approach helps self-employed borrowers who write off significant business expenses qualify for financing.
DSCR Loans qualify investors based on a rental property's income rather than personal income. The Debt Service Coverage Ratio compares monthly rent to the mortgage payment.
These loans work for Tustin real estate investors building rental portfolios. Your personal income and employment history don't matter—only the property's ability to generate rent does.
The main difference lies in income verification. Bank Statement Loans focus on your business income through deposits, while DSCR Loans focus solely on rental property cash flow.
Bank Statement Loans suit self-employed borrowers buying primary residences or second homes. DSCR Loans serve investors purchasing or refinancing rental properties in Orange County.
Rates vary by borrower profile and market conditions for both options. Your credit score, down payment, and specific situation affect your final terms.
Choose Bank Statement Loans if you're self-employed and buying a home to live in. This option works when your bank deposits show strong income but tax returns don't reflect it.
Choose DSCR Loans if you're investing in Tustin rental properties. This option lets you qualify without sharing personal income, tax returns, or employment details.
Many Orange County borrowers benefit from both loan types for different purposes. A mortgage broker can review your goals and recommend the best fit.
Yes, you can use a Bank Statement Loan for your primary residence and DSCR Loans for investment properties. Each serves a different purpose.
Rates vary by borrower profile and market conditions. Both are non-QM loans with competitive pricing based on your credit, down payment, and property type.
No, both options accept lower credit scores than conventional loans. Exact requirements vary by lender and your overall financial profile.
Down payment requirements vary by loan type and lender. Bank Statement Loans typically start at 10-15%, while DSCR Loans often require 20-25%.
Yes, both Bank Statement and DSCR Loans work for purchase and refinance transactions in Orange County.