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in Los Altos, CA
Los Altos attracts self-employed founders, consultants, and real estate investors. Standard W-2 loans often fail these borrowers.
Two non-QM options dominate here: bank statement loans and DSCR loans. Picking the wrong one costs time and deals.
Bank statement loans qualify you on cash flow, not tax returns. Lenders use 12 to 24 months of deposits to calculate income.
Self-employed borrowers in Los Altos write off a lot. That shrinks taxable income but doesn't reflect real earning power. Bank statement loans fix that.
DSCR loans ignore your personal income entirely. The property has to pay for itself — lenders look at rent versus the mortgage payment.
A DSCR above 1.0 means the rent covers the debt. Many lenders want 1.1 or 1.25. Los Altos rents are strong, which helps.
The core split is purpose. Bank statement loans buy the home you live in. DSCR loans buy the property that earns rent.
Credit requirements differ too. DSCR lenders often want 680 or higher. Bank statement programs can go lower, sometimes 620 or 640 depending on the lender.
Buying a home to live in and self-employed? Bank statement is your lane. You need documented cash flow, not W-2s.
Adding a rental to your portfolio? Use DSCR. Your personal income situation is irrelevant — the deal qualifies on its own numbers.
No. DSCR loans are investment property only. For a primary residence, look at bank statement loans instead.
Not perfect. Many programs start at 620 to 640. Stronger credit gets better rates, though.
Most lenders want 1.0 to 1.25. Los Altos rents are high, so hitting that threshold is realistic on many properties.
Yes. Many investors use a bank statement loan for their home and DSCR loans for their rental portfolio. They don't conflict.
DSCR loans often move faster since there's no personal income review. Bank statement loans take longer to underwrite.