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in San Diego, CA
Both loans skip traditional income docs. But they solve very different problems for very different borrowers.
San Diego's high property values make the right loan choice critical. Pick the wrong structure and you lose the deal.
Bank Statement loans verify income using 12 to 24 months of deposits. Lenders average your deposits and build income from that — not your tax returns.
This is the go-to loan for self-employed borrowers. Freelancers, business owners, and contractors finally get a fair shot at qualifying.
DSCR loans qualify based on the rental property's income — not yours. Lenders look at rent versus the monthly mortgage payment.
A DSCR at or above 1.0 means the rent covers the debt. Many lenders in San Diego want 1.1 or higher on investment properties.
Bank Statement loans look at you as the borrower. DSCR loans look at the property. That single difference changes everything about how you qualify.
Bank Statement works for primary residences and second homes. DSCR is strictly for investment properties. Using the wrong one wastes everyone's time.
Buying a home you'll live in? You need Bank Statement. No lender will run DSCR on an owner-occupied property — it's not allowed.
Adding a San Diego rental to your portfolio? DSCR is cleaner and faster. You don't have to touch your personal tax returns at all.
No. DSCR is investment-only. For a primary or second home, Bank Statement is the right Non-QM option.
Most lenders want a 660 or higher. Some go down to 620, but rates climb sharply below 680.
Most want 1.0 or above. Higher ratios get better rates. Below 1.0 is possible but harder to place.
Both run higher than conventional loans. Rates vary by borrower profile and market conditions — neither is clearly cheaper.
Yes. For rentals, DSCR is usually simpler. For a personal purchase, Bank Statement is the only Non-QM path.
Lenders require 12 to 24 months. Most San Diego lenders prefer 24 months for a cleaner income average.