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in Colton, CA
Colton borrowers have strong non-QM options for alternative financing. Bank Statement Loans serve self-employed individuals, while DSCR Loans target real estate investors.
Both loan types skip traditional income verification. They offer flexible paths to financing in San Bernardino County. Understanding the differences helps you choose the best fit.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This method replaces traditional tax returns and W-2 forms.
Perfect for business owners, freelancers, and contractors in Colton. Your bank deposits demonstrate your ability to repay. Rates vary by borrower profile and market conditions.
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.
Ideal for Colton real estate investors building portfolios. Your personal employment and income don't matter. The property's cash flow is what counts. Rates vary by borrower profile and market conditions.
Bank Statement Loans verify your personal income through bank deposits. DSCR Loans ignore personal income entirely and focus on rental cash flow. The qualification approach is fundamentally different.
Bank Statement Loans suit primary residences and self-employment scenarios. DSCR Loans only work for investment properties. Your property type and income source determine which loan fits best.
Choose Bank Statement Loans if you're self-employed and buying a primary residence in Colton. These loans work well when your bank deposits reflect strong income. They're built for entrepreneurs and business owners.
Choose DSCR Loans if you're investing in Colton rental properties. Your personal tax returns won't slow you down. The property's rental income does the qualifying work for you.
Bank Statement Loans work for primary residences, second homes, and investment properties. DSCR Loans only apply to investment properties with rental income.
It depends on your situation. Bank Statement Loans need strong personal deposits. DSCR Loans need properties with positive cash flow. Neither requires traditional income docs.
Yes, both typically require down payments. The exact amount varies based on property type, credit score, and lender requirements in San Bernardino County.
Potentially yes, if you're self-employed and buying an investment property. Your lender can help determine which option offers better terms for your Colton purchase.
Non-QM loans often carry slightly higher rates than conventional financing. Rates vary by borrower profile and market conditions. The flexibility often justifies the cost.