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in Palm Springs, CA
Palm Springs investors and self-employed borrowers often need alternative financing options. Bank Statement Loans and DSCR Loans both serve non-traditional borrowers in Riverside County.
These non-QM loans skip standard income verification. Each targets different borrower types with unique qualification methods. Rates vary by borrower profile and market conditions.
Understanding which loan fits your situation helps you close faster. Your choice depends on whether you're buying for business income or rental investment.
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.
Ideal for business owners, freelancers, and contractors in Palm Springs. Lenders analyze your deposits to calculate qualifying income. Personal income determines your loan approval.
You can buy primary residences, second homes, or investment properties. This flexibility makes it popular among diverse self-employed professionals.
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 by dividing rental income by monthly debt. A ratio above 1.0 means the property pays for itself. Your personal income doesn't matter.
Perfect for real estate investors building portfolios in Palm Springs. You can qualify for multiple properties without income limits affecting approval.
The main difference is what income matters for qualification. Bank Statement Loans examine your personal business income through deposits. DSCR Loans only care about rental income from the property.
Bank Statement Loans work for any property type you'll occupy or rent. DSCR Loans strictly serve investment properties generating rental income. Neither requires traditional employment verification.
Documentation differs significantly between these options. Bank Statement Loans need months of account statements showing business deposits. DSCR Loans require lease agreements and rental market analysis instead.
Choose Bank Statement Loans if you're self-employed and buying any property type. This works best when you have strong deposits but complex tax returns. Your business income qualifies you.
Choose DSCR Loans if you're an investor focused solely on rentals. This works when the property generates solid rental income. Your personal income situation becomes irrelevant.
Some Palm Springs borrowers might qualify for both options. Compare terms and rates to find the best deal. A qualified mortgage broker can help analyze your specific situation.
Yes, both work for investment properties. Bank Statement Loans use your income while DSCR Loans use rental income. Choose based on your stronger qualification method.
Rates vary by borrower profile and market conditions. Neither consistently offers better rates. Your credit score, down payment, and property type affect pricing most.
Typically yes, both usually require 15-25% down. Exact requirements depend on your credit profile and the lender. Stronger borrowers may access lower down payment options.
Both typically close in 30-45 days. Bank Statement Loans need time to review deposit history. DSCR Loans need rental analysis completed. Timelines are similar overall.
Yes, both offer refinance options for existing properties. The same qualification rules apply. You can use them for cash-out or rate-and-term refinancing.