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in Indio, CA
Both loans skip traditional income docs. But they serve very different borrowers.
Indio's mix of vacation rentals and small businesses makes both programs relevant here.
Bank Statement Loans verify income using 12 to 24 months of deposits. Lenders average those deposits to calculate qualifying income.
This works well for business owners whose tax returns show low taxable income. Your actual cash flow does the talking.
DSCR Loans qualify based on the rental property's income — not yours. Lenders divide the property's monthly rent by its monthly debt payment.
A DSCR of 1.0 means rent covers the mortgage exactly. Most lenders want 1.1 or higher to approve the loan.
Bank Statement Loans look at you. DSCR Loans look at the property. That single distinction drives every other difference between them.
DSCR Loans typically allow unlimited financed properties. Bank Statement Loans count your personal debt load, which can cap how many you qualify for.
Self-employed and buying a home you'll live in? Bank Statement is your path. DSCR won't work on a primary residence.
Buying a rental near the Coachella Valley fairgrounds or festival corridor? Run the DSCR math first. If the rent covers the payment, approval gets simpler.
Yes. Many lenders accept projected Airbnb or VRBO income. Some use market rent surveys instead of lease agreements.
No, but most lenders want at least a 620 score. Better credit gets you a better rate. Rates vary by borrower profile and market conditions.
Yes. A self-employed borrower could use Bank Statement for a primary home and DSCR for a rental property simultaneously.
It depends on your file. Both carry non-QM pricing. Rates vary by borrower profile and market conditions.
Most lenders require a minimum DSCR of 1.0 to 1.25. We see 1.1 as the most common threshold across our wholesale lenders.
Yes. These loans are designed for self-employed borrowers. W-2 employees have better options through conventional or FHA programs.