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in Highland, CA
Highland investors and self-employed professionals have unique financing needs. Traditional loans often don't work for those without W-2 income or those buying rental properties.
Bank Statement Loans and DSCR Loans offer alternative paths to financing in San Bernardino County. Both are non-QM options designed for borrowers who don't fit conventional lending boxes. Understanding the differences helps you choose the right loan for your situation.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This eliminates the need for tax returns or W-2 forms. Lenders analyze your deposits to determine qualifying income.
These loans work well for business owners, freelancers, and contractors in Highland. Rates vary by borrower profile and market conditions. You'll need consistent deposits and a solid credit profile to qualify.
DSCR Loans qualify investors based on a rental property's income rather than personal income. The Debt Service Coverage Ratio measures whether rent covers the mortgage payment. Your personal tax returns and employment don't factor into approval.
This program suits real estate investors buying rental properties in Highland. Rates vary by borrower profile and market conditions. The property must generate enough rental income to support the loan payment.
The main difference is what income gets verified. Bank Statement Loans examine your personal business income through deposits. DSCR Loans only care about the rental property's income potential.
Bank Statement Loans work for primary residences and investment properties. DSCR Loans are strictly for rental investment properties. Your choice depends on whether you're buying a home to live in or to rent out in Highland.
Choose Bank Statement Loans if you're self-employed and buying a primary residence in Highland. This option works when you have strong bank deposits but complex tax returns. It's also suitable for self-employed buyers purchasing second homes.
Choose DSCR Loans if you're investing in Highland rental properties. This option shines when you want to expand your portfolio without income documentation. It's perfect for investors with multiple properties or those who prefer privacy around personal finances.
Bank Statement Loans can work for investment properties, but DSCR Loans are specifically designed for rentals. DSCR may be simpler if the property generates sufficient rental income.
Rates vary by borrower profile and market conditions for both programs. Neither consistently offers lower rates—your credit, down payment, and property details determine your rate.
Down payment requirements vary by lender and program. Both typically require larger down payments than conventional loans, often 15-25% or more.
Both non-QM loans typically take 30-45 days to close. Bank Statement Loans may process slightly faster since they don't require rental income analysis.
Yes, you might qualify for both if you're self-employed and buying a rental property. Your lender can help determine which offers better terms for your situation.