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in Moreno Valley, CA
Both Bank Statement Loans and DSCR Loans offer flexible financing in Moreno Valley for borrowers who don't fit traditional lending boxes. These non-QM options serve different purposes and different types of borrowers.
Bank Statement Loans help self-employed borrowers qualify using their business bank statements instead of tax returns. DSCR Loans focus on investment property cash flow rather than personal income. Understanding the differences helps you choose the right path.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This approach works well for business owners who write off significant expenses on their tax returns.
Lenders analyze your deposits to calculate qualifying income. This often reveals higher income than what appears on tax returns. Rates vary by borrower profile and market conditions, making it important to compare options.
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 monthly mortgage payment.
Your personal income and employment aren't part of the approval process. The property must generate enough rent to cover the mortgage. Rates vary by borrower profile and market conditions, along with the property's DSCR ratio.
The main difference is who the loan serves. Bank Statement Loans target self-employed borrowers buying any type of home. DSCR Loans are exclusively for investment properties.
Income verification also differs completely. Bank Statement Loans examine your business deposits and cash flow. DSCR Loans only care about the rental income the property generates. Your personal tax returns don't matter with DSCR.
Property use determines which loan you need. Buying a primary residence in Moreno Valley as a business owner? Bank Statement Loans work best. Purchasing a rental property? DSCR Loans make more sense.
Choose Bank Statement Loans if you're self-employed and buying a home to live in or a second home. This option also works for investors who prefer to qualify using their business income.
Pick DSCR Loans if you're buying a Moreno Valley rental property and want to avoid personal income documentation. This route works perfectly for investors with strong rental income but complex tax situations.
Many Riverside County investors use both loan types strategically. They might use Bank Statement Loans for their primary residence and DSCR Loans for their rental portfolio. Working with an experienced mortgage broker helps you navigate both options.
Yes, Bank Statement Loans work for investment properties, primary homes, and second homes. The key requirement is being self-employed with verifiable bank deposits.
No, DSCR Loans don't require tax returns or income verification. Approval depends entirely on the rental property's income compared to the mortgage payment.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and property details affect pricing more than the loan type.
Both typically take 30-45 days to close. Bank Statement Loans may require more documentation review. DSCR Loans often move faster since they skip personal income verification.
Yes, if you're self-employed and buying a rental property. Bank Statement uses your income while DSCR uses rental income. Your broker can help determine which offers better terms.