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in Temecula, CA
Temecula borrowers have two strong non-QM options when traditional loans don't fit. Bank Statement Loans help self-employed buyers qualify using their business deposits. DSCR Loans let investors qualify based solely on rental income potential.
Both programs skip traditional W-2 income verification. Each serves different borrower needs in Riverside County's diverse real estate market. Understanding the key differences helps you choose the right financing path.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. They're perfect for business owners, freelancers, and entrepreneurs who write off significant expenses. Your deposits replace tax returns and pay stubs.
This program lets you buy a primary residence or investment property. Lenders calculate your income by averaging your bank deposits. Rates vary by borrower profile and market conditions, typically based on your credit 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. Your job, W-2s, or tax returns don't matter for approval.
These loans work exclusively for investment properties in Temecula. Lenders divide the monthly rent by the monthly payment to calculate the ratio. A DSCR of 1.0 or higher means the property pays for itself. Rates vary by borrower profile and market conditions.
The main difference is what income gets reviewed. Bank Statement Loans examine your business cash flow through deposits. DSCR Loans only care about the property's rental income potential, ignoring your personal finances entirely.
Property type matters too. Bank Statement Loans work for homes you'll live in or rent out. DSCR Loans only finance investment properties. Your employment status drives the choice: self-employed buyers usually prefer Bank Statement Loans while investors choose DSCR.
Choose Bank Statement Loans if you're self-employed and buying a home to live in. They're also smart for self-employed investors who want one flexible program. You'll need consistent deposit history and reasonable business expenses.
Pick DSCR Loans if you're building a rental portfolio in Temecula. They're perfect when you don't want to share tax returns or employment details. The property must generate strong rental income. Many investors use both programs for different properties based on each situation.
No, you choose one program per property. Bank Statement Loans review your income; DSCR Loans review property income. Select based on which qualification method works better for you.
Rates vary by borrower profile and market conditions. Both are non-QM loans with similar pricing. Your credit score, down payment, and property details affect your specific rate more than the loan type.
Bank Statement Loans don't require tax returns; they use bank statements instead. DSCR Loans may request returns but don't use them for income qualification. Both offer alternatives to traditional documentation.
Both typically need 15-25% down depending on the lender and property. Investment properties usually require larger down payments. Your specific requirements depend on credit and the property type.
Yes, both Bank Statement and DSCR programs offer refinance options. The same qualification rules apply. Many Temecula investors refinance to pull cash out or lower their payments.