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in Imperial Beach, CA
Imperial Beach attracts self-employed buyers and real estate investors who don't fit traditional lending boxes. Both bank statement and DSCR loans skip W-2 verification, but they work for completely different scenarios.
Bank statement loans prove your income through deposits. DSCR loans ignore your income entirely and qualify you on rental cash flow alone.
Most borrowers need one or the other, not both. Your employment status and investment goals determine which path makes sense.
Bank statement loans use 12 or 24 months of business or personal bank deposits to calculate your income. Lenders average your deposits and apply a percentage (typically 50-75%) as qualifying income.
This works for self-employed borrowers buying a primary home, second home, or investment property. You need consistent deposits and enough income to cover the mortgage payment.
Credit requirements start around 620, though 680+ gets better rates. Down payments typically run 10-20% depending on property type and credit profile.
DSCR loans qualify you purely on rental income versus the mortgage payment. If the property generates enough rent to cover its debt, you're approved regardless of your personal income.
These only work for investment properties, never primary residences. Your job, business income, and tax returns don't matter at all in underwriting.
Lenders calculate a ratio: monthly rent divided by monthly mortgage payment. Most want 1.0 or higher, meaning rent covers the full payment. Credit starts at 620-640, with 20-25% down standard.
The biggest split: bank statement loans require you to prove income. DSCR loans don't care about your income at all. If you're self-employed buying a home to live in, DSCR won't work because it's investor-only.
Bank statement loans allow lower down payments on primary homes, sometimes 10%. DSCR loans almost always require 20-25% down since they're investment properties.
Rates vary by borrower profile and market conditions, but DSCR loans often price slightly higher due to investment property risk. Processing time runs similar for both, usually 3-4 weeks.
Choose bank statement loans if you're self-employed and buying a primary home or second home in Imperial Beach. You need steady deposits that show enough income to qualify. This also works for investors who want lower down payments or have irregular rental income.
Pick DSCR loans if you're buying a rental property and the rent covers the mortgage. Your personal income doesn't matter, which helps if you're between jobs, semi-retired, or write off most income on taxes.
Some Imperial Beach investors use DSCR for beach rentals with strong seasonal income. Others prefer bank statement loans when they want flexibility to convert the property later or need the lower down payment option.
Yes, bank statement loans work for investment properties. You'll need higher down payment than a primary home, usually 20-25%, same as DSCR.
Both take 3-4 weeks typically. DSCR can be slightly faster since underwriters don't analyze personal income, just the rent roll and property appraisal.
No. Lenders use current market rent or an existing lease. First-time landlords qualify if the property cash flows.
You'd use one type per property, not both. Some investors have a bank statement loan on their home and DSCR loans on rentals.
Rates vary by borrower profile and market conditions. Bank statement loans on primary homes often price better than DSCR investment loans.