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in Millbrae, CA
Millbrae investors and self-employed professionals have two powerful non-QM financing options that bypass traditional income verification. Bank Statement Loans use your business cash flow to qualify, while DSCR Loans focus solely on rental property income.
Both programs serve San Mateo County borrowers who don't fit conventional lending boxes. The right choice depends on whether you're financing owner-occupied property or pure investment real estate.
Bank Statement Loans analyze 12 to 24 months of personal or business bank deposits to calculate qualifying income. This works well for self-employed Millbrae residents whose tax returns don't reflect actual cash flow.
Lenders typically use 50% to 100% of average monthly deposits as qualifying income, depending on business type. You can finance primary residences, second homes, or investment properties with this program.
These loans require proof of self-employment and consistent deposit patterns. Rates vary by borrower profile and market conditions, typically ranging higher than conventional loans due to flexible underwriting.
DSCR Loans qualify you based entirely on rental property income compared to the mortgage payment. Your personal income, employment, and tax returns don't factor into approval at all.
The debt service coverage ratio divides monthly rental income by the total monthly payment. Most lenders require a ratio of 1.0 or higher, meaning rent covers the full mortgage obligation.
These loans only finance investment properties, never owner-occupied homes. They're perfect for Millbrae investors building rental portfolios without personal income scrutiny.
The fundamental difference lies in what income counts for qualification. Bank Statement Loans examine your business deposits and cash flow, while DSCR Loans care only about what the property itself generates in rent.
Property type restrictions separate these programs clearly. Bank Statement Loans work for homes you'll live in or rent out. DSCR Loans exclusively serve investment properties where you won't reside.
Documentation requirements differ substantially. Bank Statement Loans need proof of self-employment and consistent deposits. DSCR Loans skip personal financials entirely, requiring only a lease agreement or rental appraisal.
Choose Bank Statement Loans if you're self-employed and buying a home to live in or building a portfolio while working your business. This option lets you use strong cash flow that doesn't show on tax returns.
DSCR Loans make sense for Millbrae investors focused purely on rental properties who want the simplest qualification process. They work especially well if you have strong personal income already but don't want to document it.
Consider your goals in San Mateo County's competitive market. Business owners buying primary residences need Bank Statement programs. Pure investors scaling rental portfolios benefit from DSCR's streamlined approach.
No, DSCR Loans only finance investment properties. If you plan to occupy the property, even partially, you need a Bank Statement Loan or another program.
DSCR Loans typically have simpler documentation since they ignore personal finances. Bank Statement Loans require proving self-employment and consistent deposits over 12-24 months.
Yes, both can finance multi-unit investment properties in San Mateo County. Bank Statement Loans also work for owner-occupied duplexes, triplexes, and fourplexes.
Both programs typically require 15-25% down, varying by property type and borrower profile. Investment properties generally need larger down payments than owner-occupied homes.
Yes, many Millbrae investors use Bank Statement Loans early in their journey, then switch to DSCR Loans as their portfolio grows and they want simpler qualification.