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in Grand Terrace, CA
Grand Terrace borrowers have two strong non-QM mortgage options for unique situations. Bank Statement Loans help self-employed individuals qualify using business income. DSCR Loans serve real estate investors who want to use rental income for qualification.
Both programs skip traditional W-2 verification requirements. They serve different borrower types in San Bernardino County. Understanding each loan's purpose helps you choose the right path for your Grand Terrace property purchase.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This option works well for business owners, freelancers, and contractors in Grand Terrace. Your deposits show income capacity instead of tax returns.
These loans analyze your cash flow to determine qualification amounts. Lenders typically average your deposits over the review period. Rates vary by borrower profile and market conditions. This solution bridges the gap when tax deductions reduce your stated income.
DSCR Loans qualify investors based on a rental property's income rather than personal income. The Debt Service Coverage Ratio compares monthly rent to the mortgage payment. Properties in Grand Terrace are evaluated on their own earning potential.
Your personal tax returns and W-2s stay out of the equation. The property must generate enough rent to cover the mortgage and expenses. Rates vary by borrower profile and market conditions. This approach lets you grow your San Bernardino County rental portfolio faster.
The main difference lies in what income source matters for qualification. Bank Statement Loans focus on your personal or business cash flow through deposits. DSCR Loans care only about the investment property's rental income potential.
Bank Statement Loans require you to occupy or own the property personally. DSCR Loans are strictly for investment properties in Grand Terrace that you'll rent out. Your credit profile and down payment requirements also differ between these products.
Choose Bank Statement Loans if you're self-employed and buying a Grand Terrace home to live in. This option also works for business owners purchasing second homes. Your banking activity proves you can afford the mortgage payment.
Select DSCR Loans if you're building a rental property portfolio in San Bernardino County. These loans work best when you have multiple investment properties. Your personal income remains private while your rentals do the qualifying work.
Bank Statement Loans typically require owner occupancy or are for personal use. DSCR Loans are designed specifically for rental investment properties. Your intended property use determines which option works.
Neither is necessarily easier, just different. Bank Statement Loans depend on your deposit history. DSCR Loans depend on the property's rental income potential versus the mortgage cost.
Yes, both non-QM programs typically require higher down payments than conventional loans. Expect 15-25% down depending on your situation. Rates vary by borrower profile and market conditions.
Both Bank Statement and DSCR Loans are available for refinancing existing properties. The same qualification standards apply whether you're purchasing or refinancing in San Bernardino County.
Processing times are similar for both, usually 30-45 days. Bank Statement Loans require gathering multiple months of statements. DSCR Loans need rental income documentation and property appraisals.