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in San Bernardino, CA
San Bernardino borrowers have two strong non-QM loan options when traditional financing won't work. Bank Statement Loans help self-employed individuals buy homes using their bank deposits instead of tax returns.
DSCR Loans serve real estate investors who want to qualify based on rental income alone. Both programs offer flexible underwriting for those who don't fit conventional loan boxes.
Choosing between these loans depends on whether you're buying a primary residence or investment property. Your income documentation and investment goals will guide the right choice.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This program works well for business owners, freelancers, and contractors in San Bernardino.
Lenders analyze your deposits to calculate qualifying income instead of requiring tax returns. This approach often shows higher income than what appears on your tax returns after deductions.
You'll need consistent deposits and reasonable debt-to-income ratios to qualify. Rates vary by borrower profile and market conditions, along with your credit score and down payment amount.
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 rental income by the mortgage payment. A ratio above 1.0 means the property generates more income than the payment costs.
Your personal income and employment don't matter for qualification purposes. This makes DSCR Loans ideal for investors with multiple properties or those building rental portfolios in San Bernardino County.
The biggest difference is who these loans serve and what income counts. Bank Statement Loans use your personal business income, while DSCR Loans use the investment property's rental income.
Bank Statement Loans work for primary residences, second homes, and investment properties. DSCR Loans only finance investment properties that will generate rental income.
Documentation differs significantly between the two programs. Bank Statement borrowers provide monthly statements, while DSCR borrowers provide lease agreements or rental income appraisals.
Both programs accept lower credit scores than conventional loans. Rates vary by borrower profile and market conditions, but expect slightly higher rates than traditional mortgages for added flexibility.
Choose Bank Statement Loans if you're self-employed and buying a home to live in. This option works when your business deductions reduce your taxable income significantly.
Select DSCR Loans when buying rental properties in San Bernardino and you want to avoid personal income documentation. This program helps investors scale their portfolios without employment verification hassles.
Consider your property purpose and income situation carefully before deciding. A qualified mortgage broker can review your specific scenario and recommend the best fit for your goals.
Yes, Bank Statement Loans work for investment properties, second homes, and primary residences. However, DSCR Loans may offer better terms specifically for rental properties.
DSCR Loans are often easier since they don't require personal income verification. Bank Statement Loans need consistent deposits and debt-to-income calculations.
Both typically have slightly higher rates than conventional loans due to flexible underwriting. Rates vary by borrower profile and market conditions.
Down payment requirements vary by lender and loan program. Bank Statement Loans often start at 10-15% down, while DSCR Loans typically require 20-25% down.
Yes, you could use a Bank Statement Loan for your home and DSCR Loans for rental properties. Each loan evaluates different income sources independently.