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in Mountain House, CA
Mountain House investors and self-employed borrowers often hit a wall with conventional loans. Bank statement and DSCR loans both skip W-2 verification, but they serve completely different borrower types.
Bank statement loans work for owner-occupants and self-employed buyers using personal income. DSCR loans qualify based solely on rental property cash flow, ignoring your tax returns entirely.
Bank statement loans use 12-24 months of deposits to calculate your income. Lenders apply a percentage to average monthly deposits—typically 50% for personal accounts, 75% for business accounts.
You need 10-20% down depending on credit score. These loans work for primary residences, second homes, or investment properties if you're living in one unit.
Credit score minimums start at 620, but most deals close with 680+. Self-employed borrowers who write off heavy expenses get better leverage here than with tax returns.
DSCR loans qualify on rental income alone. Lenders divide monthly rent by monthly payment (PITI) to calculate debt service coverage ratio. Most want 1.0 or higher.
You need 20-25% down minimum. No personal income verification, no tax returns, no employment letters. The property has to cash flow on paper.
These only work for investment properties. You cannot use DSCR for a home you plan to live in, even part-time.
Bank statement loans look at your business deposits. DSCR loans look at the property's rental potential. That's the core split.
For down payments, bank statement can go as low as 10% with strong credit. DSCR starts at 20% minimum, no exceptions. Credit requirements are similar—both want 620 minimum, 680 for competitive rates.
Rate pricing differs by risk profile. Bank statement adds 1-2% over conventional. DSCR adds 1.5-2.5%, sometimes higher if the property barely cash flows.
Choose bank statement if you're buying a home to live in and can't document income traditionally. This works for 1099 contractors, business owners, and commission earners with fluctuating deposits.
Choose DSCR if you're buying rental property and want to skip personal income verification entirely. Strong rental comps matter more than your tax returns here.
Mountain House has newer construction that appeals to both groups. Investors targeting Section 8 tenants should look at DSCR. Self-employed tech contractors commuting to the Bay Area fit bank statement better.
Yes, if you live in one unit of a 2-4 unit property. Pure investment properties work too, but DSCR often prices better for non-owner-occupied deals.
No. DSCR loans qualify entirely on rental income analysis. Lenders never ask for personal or business tax returns.
Bank statement loans typically price 0.5-1% better than DSCR. Rates vary by borrower profile and market conditions.
Yes. You could use bank statement for your primary residence and DSCR for rental properties. They serve different property types.
Both start at 620 minimum. Competitive pricing begins at 680 for bank statement, 700 for DSCR loans.