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in Blythe, CA
Blythe investors and self-employed borrowers often need flexible financing beyond traditional mortgages. Bank Statement Loans and DSCR Loans offer two distinct paths to homeownership in Riverside County.
Both are non-QM loan options designed for borrowers who don't fit conventional lending boxes. Understanding the core differences helps you choose the right financing strategy for your situation.
Bank Statement Loans focus on your business income through bank deposits. DSCR Loans look at rental property cash flow instead of personal income documentation.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This eliminates the need for tax returns or W-2 forms that many business owners lack.
Lenders analyze your deposits to calculate qualifying income, typically averaging monthly deposits over the statement period. This approach works well for entrepreneurs with strong cash flow but complex tax situations.
These loans serve self-employed professionals, business owners, and freelancers in Blythe. Rates vary by borrower profile and market conditions, along with your credit score and down payment amount.
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.
Lenders calculate DSCR by dividing rental income by the total monthly debt obligation. A ratio above 1.0 means the property generates enough rent to cover its mortgage payment.
This loan type benefits real estate investors purchasing income properties in Blythe and throughout Riverside County. Personal employment and income documentation typically aren't required for qualification.
The primary difference lies in what income the lender evaluates. Bank Statement Loans assess your personal or business income through deposits, while DSCR Loans focus solely on property rental performance.
Bank Statement Loans work for primary residences, second homes, and investment properties. DSCR Loans apply exclusively to rental investment properties that generate monthly income.
Qualification criteria differ significantly between these programs. Bank Statement Loans require proof of your business income stability, while DSCR Loans need rental income documentation like lease agreements.
Your goal determines the best fit: buying your own home as a self-employed borrower versus purchasing rental properties as an investor.
Choose Bank Statement Loans if you're self-employed and need financing for your primary residence or second home in Blythe. This option works when you have consistent deposits but complicated tax returns.
DSCR Loans suit investors focused on building rental property portfolios in Riverside County. If the property generates sufficient rent to cover expenses, your personal income becomes irrelevant to qualification.
Consider your primary objective: are you housing yourself or your family, or investing for rental income? Self-employed homebuyers typically need Bank Statement Loans while investors benefit from DSCR programs.
Both loan types offer flexibility that traditional mortgages cannot match. Rates vary by borrower profile and market conditions, so comparing offers from multiple lenders ensures competitive terms.
Yes, Bank Statement Loans work for investment properties. However, if the rental income alone qualifies you, a DSCR Loan might offer simpler approval without analyzing personal deposits.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and loan specifics impact pricing more than the loan type itself.
No, both programs accept lower credit scores than conventional loans. Minimum scores typically start around 620-640, though higher scores secure better rates.
Down payment requirements vary by lender and situation. Bank Statement Loans often require 10-20% down, while DSCR Loans typically need 20-25% for investment properties.
Yes, if you meet each program's criteria. You might use a Bank Statement Loan for your residence and DSCR Loans for rental properties you're acquiring.