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in Gilroy, CA
Both loans skip the W-2 and tax return requirement. That's where the similarity ends.
One is built for self-employed borrowers. The other is built for rental investors. Knowing which fits your deal saves weeks of wasted time.
Bank Statement Loans use 12 to 24 months of deposits to prove income. No tax returns, no W-2s, no pay stubs.
This is the go-to for self-employed borrowers in Gilroy whose write-offs tank their taxable income. Your actual cash flow does the talking.
DSCR Loans qualify based on the rental property's income — not yours. Lenders check if rents cover the mortgage payment.
No personal income verification needed. If the property cash flows, you can close. It's that direct.
Bank Statement Loans look at you. DSCR Loans look at the property. That's the core difference.
DSCR rates often run slightly higher than Bank Statement rates. Both carry non-QM pricing, so expect more than conventional. Rates vary by borrower profile and market conditions.
Buying a primary home or second home in Gilroy as a self-employed borrower? Bank Statement is your path.
Buying a rental in Gilroy's garlic country or anywhere else as an investor? Run the DSCR numbers first. If rent covers the payment, you're in business.
No. DSCR is investment property only. For a primary residence, Bank Statement is the non-QM path.
Most lenders want at least two years. Some allow one year with strong deposits and reserves.
Most require 1.0 or above — meaning rent at least equals the mortgage payment. Some allow 0.75 with a bigger down payment.
Bank Statement loans generally price slightly better than DSCR. Both carry non-QM premiums. Rates vary by borrower profile and market conditions.
Yes. DSCR lenders commonly lend to LLCs. Bank Statement lenders usually require an individual borrower.
DSCR can close faster — there's less income documentation to gather. Bank Statement requires statement collection and underwriter review.