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in Saratoga, CA
Saratoga attracts high-earning self-employed buyers and serious real estate investors. Both groups often can't use conventional financing.
Bank statement loans and DSCR loans are both non-QM — but they solve very different problems. Picking the wrong one wastes time.
Bank statement loans are built for self-employed borrowers. Lenders use 12 to 24 months of deposits to calculate your income.
Your Schedule C write-offs won't kill your approval here. Lenders look at cash flow, not what the IRS sees.
DSCR loans qualify you based on the rental property's income — not yours. Lenders divide the monthly rent by the mortgage payment.
A DSCR of 1.0 means rent covers the payment exactly. Most lenders want 1.1 or higher. Your personal income never enters the file.
The core difference is what qualifies you. Bank statement loans use your personal cash flow. DSCR loans use the property's cash flow.
Bank statement rates are priced on your income stability and credit. DSCR rates depend on the property type, LTV, and coverage ratio.
Buying a home to live in and you're self-employed? Bank statement is your path. DSCR doesn't apply to owner-occupied properties.
Adding a rental in Saratoga or Santa Clara County to your portfolio? DSCR is cleaner and faster. Your personal tax returns stay out of it.
No. DSCR loans are for investment properties only. Owner-occupied purchases require a different loan type, like a bank statement loan.
No. That's the point. Lenders use 12 to 24 months of deposits to calculate your qualifying income instead.
Most lenders require a DSCR of at least 1.0. Many prefer 1.1 or higher. A ratio below 1.0 means rent doesn't cover the payment.
Both carry non-QM pricing, which runs higher than conventional. Rates vary by borrower profile and market conditions.
Yes, some lenders allow it. But DSCR is usually simpler for rentals — it skips personal income review entirely.
Most lenders want 12 to 24 months. Business and personal accounts are evaluated differently — your broker will tell you which to use.