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in Milpitas, CA
Both loans skip traditional income verification. That's where the similarity ends.
Self-employed buyers and real estate investors each need a different tool. Knowing which one fits your situation saves time and avoids a declined application.
Bank Statement Loans use 12 to 24 months of deposits to calculate your income. Lenders average those deposits instead of looking at your tax returns.
This is built for self-employed borrowers whose write-offs make taxable income look low. Your actual cash flow is what qualifies you.
DSCR Loans qualify you based on the rental property's income — not yours. Lenders calculate whether the rent covers the mortgage payment.
A DSCR above 1.0 means the property pays for itself. Many lenders in Santa Clara County want to see 1.20 or higher.
Bank Statement Loans look at you. DSCR Loans look at the property. That single difference shapes every other requirement.
Rates on both products run higher than conventional loans. DSCR rates can shift based on the property's rent-to-mortgage ratio. Bank Statement rates depend heavily on your credit profile and deposit history. Rates vary by borrower profile and market conditions.
Buying a primary home or second home in Milpitas as a self-employed borrower? Bank Statement is your path. Your business cash flow can qualify you even if your Schedule C looks light.
Purchasing a Milpitas rental or investment property? DSCR is cleaner. You don't mix personal finances into the deal. The property stands on its own numbers.
No. DSCR loans are for investment properties only. For a primary home, Bank Statement is the Non-QM option.
Some lenders accept business bank statements from an LLC. Guidelines vary — not every lender handles this the same way.
Both typically require 20% or more down. DSCR loans sometimes require more depending on the property type and DSCR ratio.
Yes. A self-employed investor could use DSCR for rentals and Bank Statement for a personal home purchase. Many clients use both.
Yes. Both Non-QM products are available throughout Santa Clara County, including Milpitas. Lender overlays still apply.
DSCR loans can move quickly since there's no personal income review. Bank Statement loans add processing time for deposit analysis.