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in Loyalton, CA
Both bank statement loans and DSCR loans skip traditional W-2 income verification. The difference is what they use instead: your personal cash flow or your property's rental income.
Self-employed buyers in Loyalton use bank statement loans to purchase primary residences or vacation homes. Investors who want their property income to qualify them choose DSCR loans instead.
Bank statement loans calculate income from 12 or 24 months of business or personal account deposits. Lenders apply expense ratios between 25% and 50% depending on your business type.
You need 10-20% down, 620+ credit, and adequate bank deposits to cover the purchase. Most borrowers are contractors, real estate agents, or small business owners buying homes they'll live in.
DSCR loans qualify based solely on rental income divided by the property's mortgage payment. A ratio of 1.0 means rent covers the payment exactly; most lenders want 1.1 to 1.25.
These are investor-only loans for rental properties. Lenders don't review your tax returns, pay stubs, or employment. The property either cash flows or it doesn't.
Bank statement loans require proving you earn enough through deposits. DSCR loans require proving the property earns enough through rent. One looks at your business, the other ignores you entirely.
Rates vary by borrower profile and market conditions, but DSCR loans often price slightly higher than bank statement loans. DSCR loans also require 15-25% down versus 10-20% for bank statements.
Choose bank statement loans if you're self-employed and buying a home to live in. Your business generates income but doesn't show well on tax returns due to write-offs.
Choose DSCR if you're buying rental property and want zero personal income documentation. Works especially well if your rental income is strong but personal income is complicated or variable.
Yes, bank statement loans work for investment properties. But if the property has strong rental income, DSCR is usually simpler since it skips personal documentation.
DSCR loans often close quicker because underwriters don't review personal tax returns or employment history. Bank statements take longer to analyze and verify.
Yes, both require standard appraisals. Neither loan changes property valuation requirements or title work in rural areas like Loyalton.
Yes, lenders use market rent estimates from the appraisal. You don't need an actual lease in place at closing.
Bank statement loans typically price 0.25-0.50% lower than DSCR. Rates vary by borrower profile and market conditions for both products.