Loading
in Folsom, CA
Both loans skip the W-2. That's where the similarity ends.
Bank Statement loans are built for self-employed borrowers. DSCR loans are built for rental investors. Folsom has plenty of both.
Bank Statement loans verify income using 12 to 24 months of deposits. No tax returns. No W-2s.
This is the go-to loan for self-employed Folsom borrowers whose write-offs gut their taxable income.
DSCR loans qualify based on the rental property's cash flow — not yours. Personal income is irrelevant.
Lenders look at gross rent versus the monthly payment. A DSCR above 1.0 means the property covers itself.
Local decision guide
Use this comparison to weigh Bank Statement Loans and DSCR Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Folsom.
Both loans skip the W-2. That's where the similarity ends.
Bank Statement loans are built for self-employed borrowers. DSCR loans are built for rental investors. Folsom has plenty of both.
Bank Statement loans verify income using 12 to 24 months of deposits. No tax returns. No W-2s.
Bank Statement loans evaluate you as a borrower. DSCR loans evaluate the property as an investment.
Credit requirements and rates differ between the two. Rates vary by borrower profile and market conditions.
Buying a primary home in Folsom and self-employed? Bank Statement is your path.
Buying a rental in Folsom and want to keep your personal finances out of it? DSCR is the cleaner play.
No. DSCR loans are for investment properties only. For a primary residence, you'd need a Bank Statement or other loan.
Yes, but lenders will still evaluate your income. DSCR is usually the simpler path for investment properties.
Yes. Most DSCR lenders allow LLC vesting. Bank Statement loans typically require individual borrower qualification.
Bank Statement loans often require stronger credit profiles. DSCR credit thresholds vary but can be more flexible.
Bank Statement lenders typically require 12 to 24 months. DSCR lenders don't require personal bank statements.
Yes. Some Folsom borrowers use a Bank Statement loan for their home and a DSCR loan for a rental property.