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in Campbell, CA
Campbell's strong real estate market attracts both self-employed professionals and property investors seeking flexible financing. Bank Statement Loans and DSCR Loans offer paths to funding when traditional mortgages don't fit your financial profile.
Both are non-QM (non-qualified mortgage) products designed for borrowers who can't verify income through W-2s or tax returns. Understanding how each works helps you choose the right tool for your Campbell property purchase or refinance.
Bank Statement Loans verify income using 12 to 24 months of personal or business bank deposits. Lenders analyze your average monthly deposits to determine qualifying income, making this ideal for self-employed borrowers with strong cash flow.
This option works for primary residences, second homes, and investment properties in Campbell. You'll need consistent deposits showing sufficient income to cover the mortgage payment plus other debts.
Rates vary by borrower profile and market conditions. Most programs require 10-20% down payment and credit scores above 600, though specific requirements depend on your complete financial picture.
DSCR Loans qualify you based solely on the rental income your investment property generates. Lenders calculate the debt service coverage ratio by dividing monthly rent by the mortgage payment—no personal income verification needed.
These loans exclusively finance rental properties in Campbell and throughout Santa Clara County. Your personal tax returns, W-2s, and employment history don't factor into approval—only the property's rental income matters.
A DSCR of 1.0 or higher typically qualifies, meaning rent covers the full mortgage payment. Rates vary by borrower profile and market conditions, with most programs requiring 20-25% down and credit scores of 640 or above.
The fundamental difference lies in what income the lender examines. Bank Statement Loans look at your personal or business cash flow, while DSCR Loans focus entirely on the property's rental potential.
Property type creates another dividing line. Bank Statement Loans work for primary homes, vacation properties, and rentals. DSCR Loans only finance investment properties you'll rent out—not homes you'll live in yourself.
Down payment requirements typically run lower with Bank Statement Loans. You might secure Campbell financing with 10-15% down, whereas DSCR programs usually start at 20-25% minimum equity.
Choose Bank Statement Loans if you're self-employed and buying a home to live in or adding to an existing portfolio. This option makes sense when you have strong personal cash flow but complicated tax returns that understate your true income.
Select DSCR Loans when buying Campbell rental properties and you want to separate personal finances from investment decisions. This works especially well for growing investors, those with multiple properties, or buyers whose personal debt-to-income ratio is already stretched.
Your specific situation determines the best fit. A self-employed Campbell resident buying a primary home needs Bank Statement financing. An investor purchasing a rental duplex with strong rental comps should explore DSCR options first.
Yes, Bank Statement Loans work for investment properties. However, DSCR Loans might offer better terms since they qualify based on rental income rather than your personal finances.
Rates vary by borrower profile and market conditions. Neither consistently offers lower rates—your credit score, down payment, and property details determine your specific pricing.
Bank Statement Loans typically don't require tax returns for income verification. DSCR Loans never require them—they qualify purely on property rental income potential.
You can use different loan types for different properties. Many investors use Bank Statements for primary residences and DSCR for their rental portfolio.
DSCR Loans often close slightly faster since they skip personal income documentation. Both typically close within 30-45 days with responsive borrowers and complete documentation.