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in Rocklin, CA
Both Bank Statement and DSCR loans skip W-2 income verification, but they serve different borrower types. One qualifies you based on your business deposits, the other on rental property cash flow.
Rocklin borrowers often face this choice when traditional income docs don't reflect their actual earning power. The right loan depends on whether you're buying your own home or an investment property.
Bank Statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Underwriters look at average monthly deposits, then apply an expense factor to estimate your qualifying income.
These work for self-employed Rocklin borrowers buying primary residences, second homes, or investment properties. You need decent credit—typically 620 minimum—and at least 10% down, though 15-20% gets better pricing.
DSCR loans qualify based solely on rental property income versus the mortgage payment. If the property's rent covers 100% or more of the debt service, you can get approved regardless of your personal income.
These are strictly for investment properties in Rocklin and surrounding Placer County areas. Your personal income never enters the equation—only the property's rent roll and market rents matter to underwriting.
Bank Statement loans focus on your earning capacity as a business owner. DSCR loans ignore your income entirely and look only at what the property generates in rent.
Property type matters significantly. Bank Statement works for any occupancy type if you can document deposits. DSCR requires investment property with current or projected rental income—you cannot use it for a primary residence.
Choose Bank Statement if you're self-employed and buying a home to live in or want flexibility across property types. Your business deposits need to be consistent over 12-24 months to show stable income.
Go with DSCR if you're buying Rocklin rental property and don't want your personal income scrutinized. This works especially well for investors with strong rental comps but complex tax returns that understate income.
Yes, Bank Statement loans work for investment properties. However, if you're only buying for rental income and don't need to prove personal earnings, DSCR is usually simpler.
Rates vary by borrower profile and market conditions. DSCR often prices better for strong rental properties, while Bank Statement rates depend heavily on your credit and down payment.
No. Bank Statement uses deposit records instead of tax returns. DSCR loans skip personal income documentation entirely and qualify on property cash flow.
Bank Statement typically starts at 10% down, though 15-20% improves pricing. DSCR loans usually require 20-25% down minimum for investment properties.
No. DSCR loans are exclusively for investment properties with rental income. For owner-occupied homes, Bank Statement or other non-QM options work better.