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in Rialto, CA
Self-employed borrowers and real estate investors in Rialto have two powerful non-QM loan options. Bank Statement Loans and DSCR Loans each serve different needs in San Bernardino County's housing market.
Bank Statement Loans use your business income to qualify, while DSCR Loans focus on rental property cash flow. Understanding which loan matches your situation can save time and help you close faster.
Both options skip traditional W-2 verification. Rates vary by borrower profile and market conditions. Choosing the right product depends on whether you're buying your home or an investment property.
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 Rialto who have strong cash flow.
Lenders review your deposits to calculate qualifying income. You can buy a primary residence, second home, or investment property. This flexibility makes Bank Statement Loans ideal for entrepreneurs with non-traditional income.
Most programs accept personal or business bank statements. Some lenders allow a mix of both. The key is showing consistent deposits that demonstrate your ability to repay the loan.
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 and other costs.
These loans work exclusively for investment properties in Rialto and throughout San Bernardino County. You don't need to show W-2s, pay stubs, or tax returns. The property itself must qualify.
Lenders calculate DSCR by dividing monthly rent by the monthly mortgage payment. A ratio above 1.0 means the property generates enough income. Some programs accept ratios as low as 0.75 with larger down payments.
The main difference is what qualifies you for the loan. Bank Statement Loans evaluate your personal or business income. DSCR Loans evaluate the investment property's rental income instead.
Bank Statement Loans can finance primary residences, second homes, and investment properties. DSCR Loans work only for rental properties. Your occupancy plans determine which product you need.
Bank Statement borrowers must show income through deposits. DSCR borrowers need a lease agreement or rental appraisal. Both options offer flexibility that traditional mortgages don't provide.
Rates vary by borrower profile and market conditions. DSCR Loans may require larger down payments. Bank Statement Loans often have more flexible property type options in Rialto.
Choose Bank Statement Loans if you're self-employed and buying a home to live in. They're also smart for entrepreneurs who want to purchase rental properties but prefer income-based qualification.
Choose DSCR Loans if you're a real estate investor buying rental property in Rialto. They're perfect when you don't want to disclose personal income or when property cash flow is strong.
Some investors own multiple properties and want to avoid debt-to-income calculations. DSCR Loans solve this problem by ignoring personal finances entirely. The property stands on its own merits.
Talk to a mortgage professional about your specific situation. Both loan types serve San Bernardino County borrowers well. The right choice depends on your employment status and investment goals.
Yes, Bank Statement Loans work for investment properties. However, you still qualify based on your personal or business income rather than the rental income itself.
No, DSCR Loans don't require personal income documentation. Qualification is based entirely on the rental property's ability to cover the mortgage payment.
Rates vary by borrower profile and market conditions. Both are non-QM loans with similar rate structures. Your credit score and down payment affect pricing more than the loan type.
Most Bank Statement Loan programs require 12 to 24 months of statements. Some lenders accept 12 months, while others prefer 24 months for stronger applications.
Correct, DSCR Loans don't require personal income verification. You need a lease or rental appraisal showing the property generates sufficient income to cover expenses.