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in Lodi, CA
Both bank statement and DSCR loans serve non-W-2 borrowers in Lodi, but they work completely differently. One qualifies you on personal income. The other ignores you entirely and only looks at the property.
Bank statement loans help self-employed borrowers buy primary homes or investment properties using deposit history. DSCR loans let investors qualify purely on rental income without showing personal tax returns or pay stubs.
Most Lodi borrowers need one or the other—rarely both. Your employment type and whether you're buying to live or invest determines which path makes sense.
Bank statement loans let self-employed borrowers qualify using 12 to 24 months of business or personal bank statements. Lenders calculate income from deposits, typically at 50-75% of total inflows after averaging monthly activity.
You can buy a primary home, second home, or investment property with these loans. Credit requirements start around 620, and down payments range from 10-20% depending on property type and income strength.
These loans work for contractors, consultants, gig workers, and small business owners who show strong cash flow but write off most income on tax returns. You need consistent deposit patterns without major month-to-month swings.
DSCR loans qualify investors based solely on a property's rental income compared to its monthly debt. If the rent covers the mortgage payment plus taxes and insurance, you can qualify without proving personal income at all.
Lenders want a DSCR of 1.0 or higher—meaning rent equals or exceeds the total housing payment. Some programs go down to 0.75 DSCR if you compensate with larger down payments or stronger credit.
These loans only work for investment properties, never primary homes. You need 15-25% down, and rates run higher than conventional loans. But you skip tax returns, W-2s, pay stubs, and employment verification entirely.
Bank statement loans underwrite you as a borrower—your deposits, credit, and debt ratios matter. DSCR loans underwrite the property as a business, treating you as an LLC investor whether you are one or not.
Bank statement loans work for any property type including owner-occupied homes. DSCR loans only finance rentals. That's the clearest dividing line between the two programs.
Rates on bank statement loans tend to run 0.5-1.5% above conventional rates. DSCR loans price similarly but add more variation based on DSCR ratio—stronger property cash flow earns better pricing.
Choose bank statement loans if you're self-employed and buying a home to live in. Also use them for investment properties when your personal income is strong but hard to document on tax returns.
Choose DSCR loans when you're purely investing and the rental income stands on its own. This works well for W-2 earners who don't want to show employment docs or retirees adding rental properties without income verification.
In Lodi's rental market, DSCR makes sense for single-family homes that generate solid monthly rent. Bank statement loans fit contractors and business owners who want to buy in established neighborhoods for personal use.
Yes. Bank statement loans work for investment properties as long as you qualify based on your deposits and meet credit and down payment requirements.
No personal income documentation. Lenders only need a lease agreement or rent appraisal showing the property's rental income covers the mortgage payment.
Bank statement loans typically price slightly better. DSCR rates vary more based on the property's DSCR ratio and down payment size.
Rarely makes sense. If you qualify for bank statement, use it for better pricing. DSCR is for borrowers who can't or don't want to document personal income.
Bank statement loans start around 620. DSCR loans typically require 640 minimum, with better pricing at 680 or higher.