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in Portola Valley, CA
Portola Valley's luxury real estate market attracts both successful entrepreneurs and savvy investors. If you don't fit the traditional W-2 employee mold, non-QM financing opens doors that conventional loans keep closed.
Bank Statement and DSCR loans both serve borrowers who can't verify income through tax returns or pay stubs. The right choice depends on whether you're buying your residence or an investment property, and how you want to qualify.
Bank Statement loans verify income using 12 to 24 months of personal or business bank deposits. Lenders analyze your cash flow instead of requiring W-2s or tax returns, making this ideal for self-employed professionals and business owners.
These loans work for primary residences, second homes, and investment properties. You'll typically need deposits showing consistent income, though seasonal fluctuations are often acceptable with proper documentation.
Rates vary by borrower profile and market conditions, but expect higher rates than conventional loans. Down payment requirements usually start at 10-20% depending on property type and credit strength.
DSCR loans qualify you based solely on the investment property's rental income potential. Your personal income, employment, and tax returns don't enter the equation—only whether the property generates enough rent to cover the mortgage.
The Debt Service Coverage Ratio compares monthly rental income to the monthly mortgage payment. A DSCR of 1.0 means rent equals the payment; above 1.0 means positive cash flow, which most lenders require.
These loans are exclusively for investment properties, not primary residences. Rates vary by borrower profile and market conditions, with down payments typically ranging from 20-25% for strong DSCR ratios.
The fundamental difference is what qualifies you. Bank Statement loans look at your income through deposits. DSCR loans ignore your income entirely and focus on the property's rental potential.
Property type matters significantly. Bank Statement loans work for homes you'll live in or rent out. DSCR loans only finance investment properties, making them useless if you're buying a Portola Valley residence for yourself.
Documentation requirements differ substantially. Bank Statement loans need detailed bank records showing your cash flow patterns. DSCR loans need a lease agreement or rental market analysis proving the property can support the mortgage.
Credit and down payment expectations vary. Bank Statement loans may accept lower down payments if your bank statements show strong, consistent deposits. DSCR loans typically require larger down payments but care less about your personal financial details.
Choose Bank Statement loans if you're self-employed and buying a home to live in. They're also right for investors whose bank deposits show strong income but whose tax returns don't reflect their true earning power due to business write-offs.
Choose DSCR loans when buying or refinancing rental property and you want the simplest qualification process. If you're building a rental portfolio in San Mateo County, DSCR loans let you scale without your personal income becoming the bottleneck.
Some Portola Valley buyers could use either option for an investment property. In that case, compare which path offers better terms. If your bank statements are strong, you might secure a lower rate. If the property's rental income is exceptional, DSCR could be easier.
SRK Capital can evaluate both options based on your specific situation. The right loan depends on your goals, the property type, and which qualification method puts you in the strongest position.
Yes, Bank Statement loans work for investment properties, second homes, and primary residences. You'll qualify based on deposits showing your income, not the rental income from the property itself.
No, DSCR loans don't require employment verification, pay stubs, W-2s, or tax returns. Qualification is based entirely on whether the rental income covers the mortgage payment.
Rates vary by borrower profile and market conditions. Both are non-QM products with higher rates than conventional loans, but your specific rate depends on credit, down payment, and property details.
Yes, you can use Bank Statement loans for some properties and DSCR loans for others. Many investors use both strategies depending on each property's circumstances and their personal financial situation.
Bank Statement loans typically require 10-20% down, while DSCR loans usually need 20-25%. Higher down payments may secure better terms with either option, especially for luxury properties.