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in Chino Hills, CA
Chino Hills borrowers have two strong non-QM options for alternative financing. Bank Statement Loans serve self-employed buyers, while DSCR Loans target real estate investors.
Both programs skip traditional income verification used by conventional lenders. Each loan type solves different problems for different borrower situations in San Bernardino County.
Understanding these differences helps you choose the right path. Your income source and property purpose determine which option works best for you.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This program works well for business owners and freelancers who can't provide W-2s.
Your bank deposits replace tax returns and pay stubs. Lenders calculate income by reviewing your average monthly deposits over the statement period.
Rates vary by borrower profile and market conditions. This option lets you qualify based on actual cash flow rather than taxable income shown on returns.
DSCR Loans qualify investors based on a rental property's income rather than personal income. The Debt Service Coverage Ratio compares monthly rent to monthly mortgage payment.
Your personal tax returns and employment don't matter for approval. Lenders only look at whether the property generates enough rental income to cover its debt.
Rates vary by borrower profile and market conditions. This makes DSCR ideal for investors with multiple properties or those with complex personal finances.
The biggest difference is what income source matters for approval. Bank Statement Loans examine your personal or business cash flow, while DSCR Loans only care about property rent.
Bank Statement Loans work for primary homes, second homes, and investment properties. DSCR Loans only work for rental investment properties in Chino Hills and beyond.
Your occupation shapes the right choice. Self-employed buyers purchasing any property type should consider Bank Statement Loans. Investors buying rentals should explore DSCR options.
Both programs offer flexibility conventional loans can't match. Neither requires traditional pay stubs, W-2s, or detailed tax return reviews for income verification.
Choose Bank Statement Loans if you're self-employed and buying a primary residence in Chino Hills. This option also works for self-employed buyers purchasing vacation homes or investment properties.
Choose DSCR Loans if you're buying rental property and want the simplest approval. Your personal income situation doesn't affect qualification, making this perfect for portfolio growth.
Some borrowers qualify for both programs depending on their situation. A self-employed investor could use either option, so compare terms and rates for your specific property.
Talk with a mortgage broker familiar with San Bernardino County lending. They can review your finances and recommend the program offering better terms for your goals.
Yes, Bank Statement Loans work for investment properties. However, DSCR Loans might offer easier approval since they don't require personal income verification for rental purchases.
No, DSCR Loans don't require tax returns, pay stubs, or employment verification. Qualification depends entirely on the rental property's income versus its mortgage payment.
Rates vary by borrower profile and market conditions. Both are non-QM loans with similar pricing structures, though your credit score and down payment affect final rates.
Bank Statement Loans typically require 12 to 24 months of statements. The longer period helps lenders establish consistent income patterns for self-employed borrowers.
Yes, your personal income doesn't matter for DSCR Loans. Only the rental property's debt service coverage ratio affects approval, making this ideal for complex tax situations.