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in Lincoln, CA
Lincoln's investment market draws both fix-and-flip operators and rental investors. Each needs different income documentation.
Bank statement loans work for business owners who can't show W-2 income. DSCR loans work for investors buying cash-flowing rentals.
Bank statement loans analyze 12-24 months of deposits to calculate qualifying income. Underwriters apply a percentage to total deposits after removing transfers and one-time events.
This works for self-employed borrowers, contractors, and business owners in Lincoln who write off significant expenses. You need at least one year in business and decent credit.
DSCR loans ignore your tax returns completely. Underwriters only care if rental income covers the mortgage payment plus taxes and insurance.
A ratio above 1.0 means the property pays for itself. Many lenders approve ratios as low as 0.75 if you put more money down.
Bank statement loans require you to prove business income through deposits. DSCR loans require the property to prove its own income through rent.
Bank statements work for primary homes, second homes, and investment properties. DSCR loans only work for rental investments. Rates vary by borrower profile and market conditions.
Choose bank statement loans if you're buying in Lincoln to live there and run a business. Your deposits prove you can afford the payment.
Choose DSCR if you're buying rental property and don't want to share tax returns. The property income does all the work.
Yes, bank statement loans work for investment properties. But DSCR is usually simpler since you don't need to document personal income at all.
Bank statement loans typically require 620-640 minimum. DSCR loans often start at 660-680 depending on the lender and down payment.
DSCR loans often close quicker because there's less income documentation. Bank statement reviews take time to analyze deposits and expense patterns.
Bank statement loans skip tax returns entirely. DSCR loans also skip personal returns but may need a property appraisal with rent schedule.
You'd use one or the other per property. DSCR makes sense for rentals while bank statements work better for a primary residence.