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in Los Gatos, CA
Los Gatos attracts two types of non-QM borrowers: self-employed professionals and rental investors. Both need loans that skip traditional income verification.
Bank statement loans and DSCR loans solve the same problem differently. Knowing which fits your deal saves time and money.
Bank statement loans let self-employed borrowers prove income with 12 to 24 months of deposits. No W-2s, no tax returns.
This is the go-to for consultants, business owners, and freelancers in Los Gatos who write off too much to qualify conventionally.
DSCR loans qualify based on the rental property's income, not yours. If the rent covers the mortgage, you can get approved.
Your personal income never enters the picture. That makes scaling a rental portfolio in Los Gatos much cleaner.
Local decision guide
Use this comparison to weigh Bank Statement Loans and DSCR Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Los Gatos.
Los Gatos attracts two types of non-QM borrowers: self-employed professionals and rental investors. Both need loans that skip traditional income verification.
Bank statement loans and DSCR loans solve the same problem differently. Knowing which fits your deal saves time and money.
Bank statement loans let self-employed borrowers prove income with 12 to 24 months of deposits. No W-2s, no tax returns.
The core difference is what gets underwritten. Bank statement loans look at you. DSCR loans look at the property.
Bank statement borrowers still need to show personal financial strength. DSCR borrowers lean entirely on rental income math.
Buying a home you'll live in? Bank statement is your path. DSCR only works for non-owner-occupied rental properties.
Buying a rental and don't want your personal income scrutinized? DSCR is cleaner. Rates vary by borrower profile and market conditions.
No. DSCR loans are for non-owner-occupied rentals only. You need a bank statement or conventional loan for a primary residence.
Yes. Self-employed borrowers can use bank statement loans on investment properties. It's not limited to primary homes.
Both are non-QM and typically require at least 620–680 credit. DSCR lenders may allow slightly more flexibility since the property qualifies.
It compares monthly rent to monthly mortgage payment. A 1.0 ratio means rent exactly covers the payment. Most lenders want 1.0 or higher.
Yes. Some investors use a bank statement loan for their home and DSCR loans for rental properties simultaneously.
DSCR loans often close faster since there's no personal income review. Bank statement loans require underwriters to analyze deposit history.