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in Dunsmuir, CA
Both Bank Statement and DSCR loans skip traditional income verification, but they serve completely different borrowers. One proves your income through deposits, the other ignores your income entirely.
Dunsmuir's small-town rental market creates unique scenarios where each loan type shines. Picking wrong means a declined loan or leaving money on the table.
Bank Statement loans analyze 12 to 24 months of business or personal bank deposits to calculate income. Lenders typically use 50% of average monthly deposits as qualifying income, though some allow higher percentages.
You need consistent deposit patterns and reasonable business expenses. Credit scores start around 620, down payments run 10-20%, and you must show the deposits come from legitimate business activity.
This works for self-employed borrowers buying a primary residence, second home, or investment property in Dunsmuir. You prove income capacity through actual cash flow instead of tax returns.
DSCR loans qualify you based solely on rental income the property generates. Lenders divide monthly rent by monthly mortgage payment to get a ratio, typically requiring 1.0 or higher.
Your personal income never enters the equation. No tax returns, no pay stubs, no employment verification—just an appraisal with rent schedule or lease agreement.
This only works for investment properties, not homes you'll live in. Credit typically needs to be 640+, and most lenders want 20-25% down for Dunsmuir rental properties.
Bank Statement loans look at you—your business deposits prove you can afford the payment. DSCR loans look at the property—rent coverage proves the deal works regardless of your other income.
Bank Statement works for any property type including your Dunsmuir primary residence. DSCR only finances rentals, never owner-occupied homes.
Bank Statement requires stable deposit history with minimal NSFs or overdrafts. DSCR needs market-rate rent that covers the mortgage, which can be tough in smaller rental markets like Dunsmuir.
Rates vary by borrower profile and market conditions, but DSCR typically prices slightly better when the property has strong rent coverage. Bank Statement rates depend heavily on your deposit consistency and credit profile.
Choose Bank Statement if you're self-employed and buying any property type in Dunsmuir—especially a home you'll live in. Your business shows cash flow but tax returns don't reflect true income.
Choose DSCR if you're buying a Dunsmuir rental and either have limited personal income documentation or want to scale without hitting debt-to-income limits. The property itself does the qualifying work.
You can't use DSCR for a house you'll occupy. You can't use Bank Statement without consistent deposit history. These aren't interchangeable—they solve different documentation problems.
No. The property is either your residence (Bank Statement only) or a rental (DSCR only). You can't mix occupancy types.
DSCR typically closes faster since it skips all personal income documentation. Bank Statement needs 12-24 months of statements reviewed.
Yes, both offer cash-out refinance options. DSCR still qualifies on rental income, Bank Statement still uses deposits to prove capacity.
Rates vary by borrower profile and market conditions. DSCR often prices better when rent strongly covers the mortgage payment.
Yes. Bank Statement uses deposits instead of tax returns. DSCR skips personal financials entirely, focusing only on property income.