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in San Juan Bautista, CA
San Juan Bautista buyers often need non-QM financing when traditional W-2 income docs don't work. Bank statement loans qualify you on personal income shown through deposits, while DSCR loans qualify on rental property cash flow alone.
Both skip tax returns and work around complex income structures. The right choice depends on whether you're buying a primary residence or investment property.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Lenders typically average your deposits and apply a percentage (usually 50-75%) as qualifying income.
These work for self-employed borrowers buying primary homes, second homes, or investment properties in San Juan Bautista. You need decent credit—usually 620 minimum—and at least 10% down.
DSCR loans ignore your personal income completely. Lenders qualify based on the property's rental income divided by the monthly mortgage payment—the debt service coverage ratio.
You need a DSCR of 1.0 or higher (property income covers the payment). These only work for investment properties, never primary residences. Expect 20-25% down and credit scores around 640 minimum.
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 San Juan Bautista.
San Juan Bautista buyers often need non-QM financing when traditional W-2 income docs don't work. Bank statement loans qualify you on personal income shown through deposits, while DSCR loans qualify on rental property cash flow alone.
Both skip tax returns and work around complex income structures. The right choice depends on whether you're buying a primary residence or investment property.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Lenders typically average your deposits and apply a percentage (usually 50-75%) as qualifying income.
Bank statement loans qualify you based on your earning power. DSCR loans qualify the property based on its earning power. That's the core split.
Bank statements work for any property type including your personal residence. DSCR is investment-only. Rates vary by borrower profile and market conditions, but DSCR loans often price slightly better since the property income creates lower lender risk.
Buying a home to live in around San Juan Bautista? Bank statement loan is your only option between these two. The property type makes this decision simple.
Buying a rental property? Choose DSCR if the numbers work—if rent covers the mortgage payment at 1.0+ ratio. Choose bank statements if rental income falls short but your business deposits can qualify you instead.
Yes. Bank statement loans work for investment properties, primary homes, and second homes. DSCR loans only work for investment properties.
DSCR loans often price slightly better because property income creates lower lender risk. Rates vary by borrower profile and market conditions.
Yes. Neither program requires tax returns. Bank statements show income through deposits, DSCR uses rental income only.
Some lenders allow DSCR ratios below 1.0 with larger down payments. Otherwise, use bank statement loans to qualify on your personal income instead.
Not on the same property, but you can use bank statements for one purchase and DSCR for another. Each loan stands alone.