Loading
in Ripon, CA
Ripon investors and self-employed buyers face the same problem: traditional W-2 documentation doesn't work for you. Both bank statement and DSCR loans skip tax returns, but they verify income in completely different ways.
Bank statement loans measure your personal cash flow through deposits. DSCR loans ignore your income entirely and only care if the rental property pays for itself.
Bank statement loans analyze 12 to 24 months of business or personal account deposits to calculate qualifying income. Lenders typically count 50% of deposits as usable income after accounting for business expenses.
This works for self-employed borrowers buying primary homes, second homes, or investment properties in Ripon. You need consistent deposits and at least 10-15% down depending on the property type and credit profile.
DSCR loans qualify you based purely on rental income versus the mortgage payment. The property must generate enough rent to cover the debt, typically with a ratio of 1.0 or higher meaning rent equals or exceeds PITIA.
These are strictly for investment properties in Ripon—no primary residences allowed. Your personal income, employment, and tax returns never enter the equation, which makes approval faster for experienced investors.
The fundamental split: bank statement loans verify you earn enough personally, while DSCR loans verify the property earns enough. If you're buying a Ripon home to live in, DSCR is off the table immediately.
Down payment requirements differ too. Bank statement loans start around 10-15% for primary homes but climb to 20% for investment properties. DSCR loans consistently need 20-25% down since they're riskier without personal income backing.
Choose bank statement loans if you're self-employed and buying a home to live in around Ripon. They also work for investors who want flexibility to occupy the property later or who have strong personal income but light rental projections.
Go with DSCR if you're a pure investor buying Ripon rentals with solid income potential. Your personal tax situation doesn't matter—only the rent roll and property expenses. This works best when you want a hands-off approval process focused purely on the deal numbers.
No. Bank statement loans require occupancy intent for owner-occupied rates, while DSCR prohibits living in the property. You pick one based on your actual use case.
Rates vary by borrower profile and market conditions. Bank statement loans typically price slightly better for owner-occupied properties due to lower risk versus investment-only DSCR loans.
Yes, both support cash-out refinances on existing Ripon properties. DSCR often approves faster since it skips personal income verification entirely.
Both typically require 620-640 minimum credit scores. Higher scores above 700 unlock better rates and lower down payment requirements for both programs.
Absolutely. DSCR loans don't count against debt-to-income ratios, making them perfect for scaling a rental portfolio across Ripon and San Joaquin County.