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in Norco, CA
Norco borrowers have two powerful non-QM loan options when traditional financing doesn't fit. Bank Statement Loans help self-employed individuals qualify using their business cash flow. DSCR Loans let investors qualify based on rental property income alone.
Both loans skip traditional income verification like W-2s and tax returns. They serve different borrower types in Riverside County. Understanding which fits your situation can save time and help you close faster.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This works well for business owners whose tax returns show lower income due to write-offs. Lenders calculate your income based on actual deposits into your accounts.
These loans are perfect for Norco entrepreneurs, freelancers, and contractors. You keep your primary residence or investment property financing options open. Rates vary by borrower profile and market conditions, along with your credit score and down payment.
DSCR Loans qualify investors based on a rental property's income rather than personal income. The property must generate enough rent to cover the mortgage payment. Lenders calculate the debt service coverage ratio to determine eligibility.
This option works great for Norco investors building rental portfolios. Your personal income and employment don't matter for qualification. Rates vary by borrower profile and market conditions, plus the property's rental strength and your down payment amount.
Bank Statement Loans focus on your business income through personal or business bank accounts. DSCR Loans only care about the rental property's income potential. One examines your earning ability while the other examines the property's performance.
Bank Statement Loans work for primary residences and investment properties in Norco. DSCR Loans are strictly for investment properties you'll rent out. Your choice depends on whether you're self-employed needing flexible income verification or an investor seeking portfolio growth.
Documentation differs significantly between these two options. Bank Statement Loans require months of deposit history and business documentation. DSCR Loans need lease agreements and rent comparables to prove the property generates sufficient income.
Choose Bank Statement Loans if you're self-employed and buying in Norco for personal use or investment. They're best when your business generates strong cash flow but tax deductions reduce your official income. This loan type validates what you actually earn through deposits.
Pick DSCR Loans if you're an investor focused purely on Riverside County rental properties. They're perfect when you want to grow your portfolio without personal income limits. The property's rental potential determines approval, not your employment or tax returns.
Many Norco borrowers benefit from knowing both options exist. Some investors use Bank Statement Loans for one property and DSCR for another. Working with an experienced broker helps you match the right loan to each specific situation.
Yes, many Norco borrowers use Bank Statement Loans for one property and DSCR for another. Each loan is evaluated separately based on the property and purpose.
Rates vary by borrower profile and market conditions for both options. Your credit score, down payment, and specific situation affect pricing more than the loan type itself.
No, both Bank Statement and DSCR Loans accept lower credit scores than conventional loans. Requirements vary by lender, typically starting around 620-640.
Both typically require 15-25% down, though some programs go lower. DSCR Loans often need higher down payments for stronger properties with good cash flow.
Yes, you can refinance between these loan types in Norco. Many investors refinance as their situation changes or to access better terms for their goals.