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in Rancho Cordova, CA
Both loans skip tax returns entirely. That's where the similarity ends.
Self-employed borrowers and real estate investors have different needs. Picking the wrong loan wastes time and costs money.
Bank Statement Loans use 12 to 24 months of deposits to calculate your income. Lenders average your deposits and apply an expense factor.
This works for business owners, freelancers, and contractors whose tax returns understate real income. Your revenue speaks louder than your Schedule C.
DSCR Loans qualify you based on the rental property's cash flow. Your personal income doesn't enter the equation.
Lenders divide the property's gross rent by its total debt payment. A ratio at or above 1.0 usually gets you approved.
Bank Statement Loans look at you. DSCR Loans look at the property. That distinction drives every other difference in how these loans work.
Bank Statement Loans fit primary residences and investment properties. DSCR Loans are investment-only — you cannot use one to buy a home you plan to live in.
Buying a rental in Rancho Cordova and the rent covers the payment? DSCR is the cleaner path. Less documentation, faster close.
Buying your own home or a mixed-use property as a self-employed borrower? Bank Statement is your lane. Just have those deposits ready.
No. DSCR is for investment properties only. Use a Bank Statement Loan if you're buying a home you'll live in.
Both are non-QM, but Bank Statement Loans often require stronger credit. DSCR lenders focus more on the property's income than your score.
Yes. Some borrowers use a Bank Statement Loan for their primary home and a DSCR Loan for a rental. They don't conflict.
Bank Statement Loans do. DSCR Loans taken in an LLC may not, depending on how the lender reports. Ask us before you close.
DSCR Loans typically close faster. There's less income documentation to verify. Bank Statement files take longer to underwrite.
Yes, both carry non-QM pricing. Rates vary by borrower profile and market conditions. Shopping lenders makes a real difference.