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in Goleta, CA
Both loans skip traditional income docs. But they serve very different borrowers.
Bank statement loans fit self-employed buyers. DSCR loans fit rental property investors. Knowing which you need saves time.
Bank statement loans verify income using 12 to 24 months of deposits. No W-2s. No tax returns.
This loan was built for self-employed borrowers. Freelancers, business owners, consultants — anyone whose write-offs kill their taxable income.
DSCR loans ignore your personal income entirely. Lenders look at the rental property's cash flow instead.
A DSCR above 1.0 means the rent covers the mortgage. Most lenders want 1.1 to 1.25 to approve the deal.
Bank statement loans are about you. DSCR loans are about the property. That one distinction changes everything.
Bank statement borrowers need strong deposit history. DSCR borrowers need a rental with solid numbers. Neither requires a tax return.
Buying a home in Goleta for yourself? Bank statement is your path if you're self-employed.
Buying a rental or investment property? Run the DSCR numbers first. If the rent covers the payment, you likely qualify.
Yes, but a DSCR loan is usually a better fit. DSCR doesn't factor your personal income at all, which often means easier approval on rentals.
No personal income docs required. Lenders verify the property's rent income — typically with a lease or market rent appraisal.
Both are non-QM loans with flexible guidelines. Most lenders want at least 620–640 for either program. Rates vary by borrower profile and market conditions.
Yes. Most DSCR lenders allow LLC vesting. Bank statement loans typically require the borrower to hold title personally.
Expect 10–20% down for bank statement loans and 20–25% for DSCR loans. Non-QM lenders set their own minimums, so it varies.
DSCR loans often close faster. There's less personal financial documentation to gather — just property income and an appraisal.