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in Santee, CA
Santee borrowers who don't fit traditional W-2 income boxes need non-QM loans. Bank statement and DSCR loans both skip tax returns, but they verify income completely differently.
Bank statement loans work for self-employed buyers using personal income. DSCR loans ignore your income entirely and qualify you on rental property cash flow instead.
Bank statement loans use 12 or 24 months of business or personal bank deposits to calculate income. Lenders average your monthly deposits, then apply a percentage (usually 50-75%) to account for business expenses.
These loans work for contractors, business owners, and 1099 earners buying primary homes or investment properties in Santee. You need decent credit (typically 620+) and 10-20% down depending on property type.
DSCR loans qualify you purely on rental income from the property you're buying. Lenders divide monthly rent by the mortgage payment to calculate debt service coverage ratio. A ratio above 1.0 means the rent covers the payment.
Your personal income, employment, and tax returns don't matter. DSCR loans only work for investment properties, not owner-occupied homes. Most lenders want 20-25% down and credit scores around 640+.
The biggest split: bank statement loans verify your personal earning power, while DSCR loans don't care what you make. If you're buying a rental in Santee but have strong business income, bank statement loans give you options for any property type.
DSCR loans keep your personal finances completely separate. No income docs, no employment verification, no tax return review. The property either cash flows or it doesn't. Rates on both run 0.5-2% higher than conventional loans, varying by profile and market conditions.
Choose bank statement loans if you're self-employed, show strong deposits, and want flexibility to buy a primary home or rental. They work when you can document earning power through business accounts.
Pick DSCR if you're building a rental portfolio, have messy personal income documentation, or want to isolate property purchases from personal finances. DSCR shines when Santee rental comps show strong cash flow but your tax returns show business write-offs that kill qualifying income.
Yes. Bank statement loans work for both primary homes and investment properties, unlike DSCR which only does rentals.
No. DSCR lenders skip all personal income documentation and qualify you purely on the rental property's cash flow.
Rates vary by borrower profile and market conditions. Both typically run higher than conventional loans, with pricing dependent on credit score and down payment.
Yes. Many investors use bank statements for a primary home and DSCR for rental properties to keep purchases separate.
Bank statement loans start at 10% down for owner-occupied, 15-20% for investment. DSCR typically requires 20-25% down minimum.