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in Loma Linda, CA
Loma Linda borrowers have unique financing needs that traditional loans don't always meet. Both Bank Statement Loans and DSCR Loans offer flexible paths to homeownership in San Bernardino County.
These non-QM options skip traditional income verification. Your choice depends on whether you're buying for yourself or investing in rental property.
Understanding each loan type helps you make the right decision. Rates vary by borrower profile and market conditions.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This works well for business owners and freelancers in Loma Linda.
Your deposits show earning power instead of tax returns. Lenders calculate income by averaging your monthly deposits over the review period.
This option helps self-employed buyers qualify for primary residences or second homes. You avoid the documentation challenges that come with traditional mortgage applications.
DSCR Loans qualify investors based on a rental property's income rather than personal income. The property itself must generate enough rent to cover the mortgage payment.
Lenders calculate the debt service coverage ratio by dividing rental income by the mortgage payment. A ratio above 1.0 means the property pays for itself.
This loan type is designed specifically for investment properties in Loma Linda. Your personal income and tax returns don't factor into the approval decision.
The main difference is purpose: Bank Statement Loans serve self-employed homebuyers while DSCR Loans serve real estate investors. One focuses on your business income, the other on property performance.
Bank Statement Loans require your personal bank records and income analysis. DSCR Loans only need a property appraisal and rent analysis to determine feasibility.
If you're living in the home, choose Bank Statement Loans. If you're renting it out, DSCR Loans make more sense for your San Bernardino County investment.
Choose Bank Statement Loans if you're self-employed and buying a home to live in. This works for business owners, contractors, and freelancers with inconsistent income documentation.
Choose DSCR Loans if you're investing in Loma Linda rental properties. Your personal income doesn't matter as long as the rent covers the mortgage.
Both options provide flexibility that traditional loans can't match. Rates vary by borrower profile and market conditions, so compare both with a qualified lender.
Some lenders allow it, but DSCR Loans are typically better for investment properties. They focus on rental income rather than your business income.
Rates vary by borrower profile and market conditions. Both are non-QM loans with similar rate structures. Your credit score and down payment impact pricing most.
Non-QM loans typically require 15-25% down. DSCR Loans often need 20-25% for investment properties, while Bank Statement Loans may accept 15-20%.
Both can close in 30-45 days. Bank Statement Loans need more document review. DSCR Loans are often faster since they skip personal income verification.
Yes, if you're self-employed and buying rental property. However, DSCR makes more sense for investment properties since it simplifies the process.