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in Chula Vista, CA
Chula Vista borrowers often need income verification that doesn't rely on W-2s or tax returns. Bank statement and DSCR loans both skip traditional documentation, but they solve different problems.
Bank statement loans work for self-employed borrowers buying primary homes or investment properties. DSCR loans ignore your personal income entirely and only look at what the rental property generates.
Bank statement loans calculate your income from 12 or 24 months of business or personal bank deposits. Lenders apply an expense ratio (typically 25-50%) to estimate net income from gross deposits.
You need 10-20% down, credit scores above 600, and consistent monthly deposits. These loans work for contractors, business owners, and commissioned sales reps buying in Chula Vista's residential neighborhoods.
Rates run 1-2% higher than conventional loans. The tradeoff is qualifying without showing tax returns that reflect write-offs and deductions.
DSCR loans qualify you based on the rental property's income, not yours. Lenders calculate the debt service coverage ratio by dividing monthly rent by the mortgage payment (including taxes and insurance).
You need a DSCR of 1.0 or higher for most approvals, though some lenders go down to 0.75. Minimum down payments start at 20-25%, with credit scores above 620.
Your personal income, employment, and tax returns don't matter. These loans work for investors buying single-family rentals, condos, or small multifamily properties in Chula Vista.
The biggest split is what counts as income. Bank statement loans look at your deposits to prove you earn enough. DSCR loans only care about rent covering the mortgage payment.
Bank statement loans work for primary residences, second homes, and investment properties. DSCR loans are investment-only and can't be used if you plan to live in the property.
Down payment requirements overlap, but DSCR loans typically require 20-25% compared to bank statement loans starting at 10%. Credit score minimums are similar, with both accepting scores from 600-620.
Choose bank statement loans if you're self-employed and buying a home to live in. They also work for investors who want lower down payments or need to show personal income alongside rental income.
DSCR loans fit investors who want to avoid income documentation completely. If the property generates enough rent to cover the mortgage and you have 20-25% down, DSCR is cleaner and faster.
Rates vary by borrower profile and market conditions. DSCR loans sometimes price better for strong rental properties because lenders see less personal income risk.
No. DSCR loans are investment properties only. If you're buying a home to live in, bank statement or other non-QM programs work better.
Rates vary by borrower profile and market conditions. DSCR loans sometimes price lower when rental income is strong and covers the payment easily.
Neither requires tax returns for income verification. Bank statement loans use deposits, DSCR loans use a lease agreement or market rent appraisal.
Bank statement loans start at 600. DSCR loans typically require 620 or higher, depending on the lender and down payment amount.
Yes. Both loan types work for 1-4 unit properties. DSCR loans are common for small multifamily investments when rental income covers the mortgage.