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in Roseville, CA
Roseville's real estate market attracts both self-employed buyers and investors. Each group needs different income documentation.
Bank statement loans work for business owners buying primary homes. DSCR loans serve investors buying rental properties.
Both are non-QM products, meaning they skip traditional income verification. But they solve completely different problems.
Bank statement loans use 12 to 24 months of deposits to calculate qualifying income. Lenders average deposits and multiply by a percentage based on your business structure.
You need 620+ credit and 10-20% down for most properties. Works for primary homes, second homes, and investment properties.
Best for self-employed borrowers who write off substantial expenses. Tax returns show low income, but bank deposits tell the real story.
Processing takes 3-4 weeks with the right documentation. You'll need business bank statements, personal bank statements if mixing funds, and a CPA letter explaining deposits.
DSCR loans qualify you based on rental income only. Lenders divide monthly rent by the mortgage payment to get your debt service coverage ratio.
You need a DSCR of 1.0 or higher for most programs. Properties with strong rental income can qualify with zero personal income verification.
Investment properties only—no primary homes allowed. Rates run 0.5-1.5% higher than conventional loans but approval is faster.
Best for investors with multiple properties or complex tax returns. Your W-2 income, 1099 earnings, and business profits don't matter at all.
Bank statement loans require your personal deposits and focus on your ability to repay. DSCR loans ignore your income entirely and look only at rent vs payment.
You can buy a primary home with bank statements but not with DSCR. DSCR is strictly for investors.
Bank statements need more documentation upfront—statements, CPA letters, business licenses. DSCR loans need a lease agreement or rental appraisal.
Rates vary by borrower profile and market conditions. DSCR rates typically run slightly higher because approval relies on property performance alone.
Choose bank statement loans if you're self-employed and buying a home to live in. Also the right call for investors who want flexibility across property types.
Choose DSCR if you're buying rental properties and want zero personal income scrutiny. Especially useful when you're scaling a portfolio fast.
In Roseville's rental market, single-family homes and condos near Sacramento commuters can hit 1.0+ DSCR easily. Bank statement loans make more sense for owner-occupied purchases.
Most self-employed buyers in Placer County start with bank statement loans. Investors with three or more rentals usually switch to DSCR for simplicity.
Yes. You can have a bank statement loan on your primary home and DSCR loans on rental properties. Different properties, different income verification.
DSCR loans typically close in 2-3 weeks. Bank statement loans need 3-4 weeks because of additional documentation review.
Neither requires tax returns for income qualification. DSCR skips personal income entirely. Bank statements replace tax returns for income calculation.
You can refinance from bank statement to DSCR if you convert to a rental. Can't go the other way since DSCR properties must stay rentals.
Bank statement loans usually price 0.25-0.5% lower. DSCR rates are higher because lenders take on more risk with no personal income verification.