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in Fontana, CA
Fontana investors and self-employed borrowers have two strong non-QM loan options. Bank Statement Loans and DSCR Loans each serve different financing needs in San Bernardino County.
Bank Statement Loans work best for business owners who need to verify income without tax returns. DSCR Loans help investors qualify based on rental property cash flow alone.
Both options bypass traditional W-2 income requirements. Understanding which loan matches your situation can streamline your Fontana property purchase.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This approach helps business owners who show lower income on tax returns qualify for financing.
Lenders calculate income by averaging deposits over the statement period. Personal and business bank accounts can both be used depending on the lender.
These loans work well for Fontana residents who own their businesses or work as independent contractors. You'll need consistent deposits and reasonable debt-to-income ratios.
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 and expenses.
Lenders calculate the Debt Service Coverage Ratio by dividing monthly rent by the monthly mortgage payment. A ratio above 1.0 means the property generates positive cash flow.
These loans are perfect for Fontana real estate investors building rental portfolios. Your personal employment and income don't factor into qualification decisions.
The main difference is what income the lender examines. Bank Statement Loans review your personal business income while DSCR Loans only consider rental property cash flow.
Bank Statement Loans can finance primary homes, second homes, and investment properties. DSCR Loans only work for non-owner-occupied investment properties in Fontana.
Your employment status matters differently for each loan. Self-employed borrowers need Bank Statement Loans while investors with W-2 jobs often prefer DSCR Loans.
Both programs offer flexible underwriting compared to conventional loans. Rates vary by borrower profile and market conditions for each option.
Choose Bank Statement Loans if you're self-employed and buying a home to live in. They're also right if you write off significant business expenses that lower your taxable income.
Choose DSCR Loans if you're investing in Fontana rental properties. They work especially well if you want to avoid providing tax returns and pay stubs entirely.
Some investors qualify for both loan types. Your property goals and income situation determine which offers better terms for your San Bernardino County purchase.
Bank Statement Loans work for investment properties if you're self-employed. DSCR Loans are specifically designed for investors and often have simpler qualification.
Rates vary by borrower profile and market conditions. Your credit score, down payment, and property details affect pricing more than the loan type itself.
Bank Statement Loans typically don't require tax returns but use bank statements instead. DSCR Loans may not require any personal income documentation at all.
Both programs typically require minimum credit scores around 620-640. Higher scores unlock better rates and terms for your financing.
Bank Statement Loans often require 10-20% down. DSCR Loans typically need 20-25% down for investment properties in Fontana.