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in San Jose, CA
Both loans skip tax returns entirely. That's where the similarity ends.
San Jose has some of the highest property values in California. Picking the wrong non-QM loan here is an expensive mistake.
Bank statement loans qualify you on cash flow — yours personally. Lenders look at 12 to 24 months of deposits to determine your income.
This loan is built for self-employed borrowers. Consultants, business owners, and freelancers in San Jose's tech economy use this constantly.
DSCR loans don't care what you earn personally. The rental property's income has to cover the mortgage — that ratio is everything.
A DSCR above 1.0 means the property cash flows. Many lenders want 1.25 or higher. Your W-2 or 1099 never enters the picture.
Bank statement loans look at the borrower. DSCR loans look at the property. That's the core difference.
Rates vary by borrower profile and market conditions. DSCR loans often carry slightly higher rates than bank statement loans, but that gap shifts by lender.
Buying a primary residence or second home in San Jose? Bank statement is your path if you're self-employed.
Buying a rental or investment property? Run the DSCR numbers first. If the rents cover the payment, you may not need income docs at all.
No. DSCR loans are investment property only. For a primary residence, bank statement is the right non-QM option.
Most lenders want at least 640–660. Stronger credit gets you better rates. Rates vary by borrower profile and market conditions.
Most lenders want a 1.0 minimum. Many prefer 1.25. High San Jose rents can help hit that threshold.
Yes. A self-employed investor could use bank statement for a primary home and DSCR for a rental. Each loan qualifies separately.
DSCR often moves faster. There's less borrower documentation to collect and review. Bank statement underwriting takes more time.
DSCR lenders commonly allow LLC vesting. Bank statement loans typically require individual borrower qualification. Confirm with your lender.