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in Dorris, CA
Self-employed borrowers and real estate investors in Dorris often don't fit traditional loan boxes. Bank statement loans and DSCR loans both skip W-2 verification, but they solve different problems.
Bank statement loans qualify you based on your business deposits. DSCR loans ignore your personal income entirely and look only at rental property cash flow.
Bank statement loans use 12 to 24 months of personal or business bank deposits to calculate qualifying income. Lenders typically count 50% of deposits as income after expenses, though some programs go higher.
You can buy a primary residence, second home, or investment property. Credit scores start at 620, and most lenders cap at 80% LTV for single-family purchases in Dorris.
The documentation burden is lighter than traditional loans but heavier than DSCR. You'll provide statements, a CPA letter if using business accounts, and standard credit and asset verification.
DSCR loans qualify you based on rental income divided by the property debt service. Lenders want a ratio of 1.0 or higher, meaning rent covers the mortgage payment, taxes, insurance, and HOA fees.
These loans fund investment properties only—no owner occupancy allowed. Credit scores start at 620 for most programs, with LTV up to 80% on purchases depending on DSCR strength.
You don't provide tax returns, pay stubs, or employment verification. The property's rental income does all the work. That makes DSCR loans faster and cleaner for investors with complicated tax situations.
Bank statement loans verify your ability to repay through business cash flow. DSCR loans don't care what you earn personally—only whether the property pays for itself.
Bank statements work for buyers who live in the home or rent it out. DSCR is rental-only. If you're buying a house in Dorris to occupy, bank statements are your path.
Documentation differs sharply. Bank statement loans require months of statements and income analysis. DSCR loans need a lease agreement or rental appraisal, plus standard credit and title work.
Choose bank statement loans if you're self-employed and buying a home to live in. They're also the right call for investors whose personal income matters more than rental cash flow.
Choose DSCR loans if you're buying a rental property with strong cash flow and want to keep your tax returns out of underwriting. DSCR works best when the property income is clean and verifiable.
In Dorris, most residential buyers lean toward bank statement loans because they need owner occupancy. Investors targeting rental properties prefer DSCR for speed and simplicity.
Yes, bank statement loans work for both owner-occupied and investment properties. You'll qualify based on your business income, not the rental income.
No, DSCR loans skip tax returns and pay stubs entirely. The rental property income must cover debt service, but your personal earnings don't factor in.
DSCR loans typically close faster because they require less borrower documentation. Bank statement loans need more income analysis and verification steps.
Yes, most bank statement and DSCR programs start at 620 credit. Lower scores may limit LTV or require higher reserves.
Some lenders approve DSCR as low as 0.75, but you'll pay higher rates and lower LTV. Strong credit and reserves help compensate for weaker cash flow.
Yes, expect rates 1-2% above conventional on both programs. Non-QM loans carry higher risk for lenders, which translates to higher borrower costs.