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in Fort Jones, CA
Fort Jones borrowers often need alternatives to traditional W-2 income verification. Both bank statement and DSCR loans skip tax returns, but they serve completely different purposes.
Bank statement loans work for self-employed buyers purchasing a primary home. DSCR loans are built for investors buying rental properties where the property income matters more than yours.
Bank statement loans use 12-24 months of business or personal bank deposits to calculate income. Lenders apply a percentage to your average monthly deposits to determine qualifying income.
You need decent credit (usually 620+) and enough cash flow through your accounts. These work great for contractors, real estate agents, or small business owners buying their own home in Fort Jones.
DSCR loans ignore your personal income entirely. The underwriter looks at the property's rent versus its mortgage payment, taxes, and insurance to calculate debt service coverage ratio.
If the property generates enough rent to cover 100-125% of its housing costs, you can qualify. Your tax returns never enter the equation, which matters for investors with complex returns or high write-offs.
The biggest split is property use. Bank statement loans fund primary residences, second homes, and sometimes investment properties. DSCR loans only work for rentals—you cannot live in the property.
Income verification diverges completely. Bank statement lenders care about your deposits and business cash flow. DSCR lenders only care if the rental income covers the mortgage. If you're buying your own home, bank statement is your only option here.
Choose bank statement if you're self-employed and buying a place to live in Fort Jones. Your business deposits need to show consistent income, and you'll need to explain any irregular large deposits.
Go DSCR if you're buying a rental property and the rent covers the payment. This works especially well if your tax returns show low income due to depreciation and business write-offs, or if you simply want to avoid submitting personal financials.
Some lenders allow it, but most restrict bank statement loans to primary residences. DSCR is the better tool for rentals since it qualifies based on property income.
Rates vary by borrower profile and market conditions. DSCR loans often price slightly better since they carry less documentation risk, but both are non-QM products with higher rates than conventional.
Bank statement loans typically need 10-20% down for primary homes. DSCR loans usually require 20-25% down since they're investment properties with higher risk.
Yes, if you're buying multiple properties. Use bank statement for your residence and DSCR for rentals—they serve separate purposes and don't conflict.
Lenders average 12-24 months of deposits, smoothing out fluctuations. Extremely erratic income may require longer statement history or additional reserves to offset risk.