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in Yreka, CA
Yreka's small-town real estate market attracts self-employed buyers and rental investors who don't fit traditional lending boxes. Both bank statement and DSCR loans skip W-2 income verification, but they serve completely different borrower types.
Bank statement loans work for business owners buying personal residences. DSCR loans work for investors buying rental properties. The right choice depends on whether you're moving in or renting out.
Bank statement loans let self-employed borrowers use 12 to 24 months of personal or business bank statements to prove income. Lenders average your deposits and apply an expense factor between 25% and 50% to calculate qualifying income.
You're buying a primary residence, second home, or investment property using your own income. Most Yreka self-employed buyers—contractors, small business owners, real estate agents—use this product when they can't show two years of tax returns with sufficient income.
Expect to put down 10% to 20% depending on credit score and property type. Rates run 1% to 2% higher than conforming loans. You need 620 minimum credit, though 680+ gets better pricing.
DSCR loans qualify you based on rental income, not your personal earnings. Underwriters divide the property's expected monthly rent by the monthly mortgage payment to get a debt service coverage ratio. Most lenders want 1.0 or higher.
You're buying a rental property and don't want to document personal income. Yreka investors buying small multifamily properties or single-family rentals use DSCR loans when they're self-employed, own multiple properties, or simply want to keep personal finances separate.
Down payments start at 20% for long-term rentals. Credit requirements are similar to bank statement loans—620 minimum, better rates at 680+. Rates run slightly higher than bank statement loans because property income is less predictable than personal income.
Income source is the fundamental split. Bank statement loans analyze your business cash flow through deposits. DSCR loans analyze the property's rental income through market rents or a lease agreement. One looks at you, the other looks at the property.
Property type matters more than borrowers realize. Bank statement loans work for any occupancy type—you can buy a primary home on Main Street. DSCR loans only work for investment properties you're renting out.
Documentation differs significantly. Bank statement loans require 12-24 months of statements, tax returns, and profit-and-loss statements. DSCR loans need a rental analysis or lease, property appraisal, and no personal income docs at all.
Choose bank statement loans if you're self-employed and buying a home to live in. Also choose it for rental properties when your personal income is strong but complicated by write-offs. You need clean bank statements showing consistent deposits over 12-24 months.
Choose DSCR loans if you're buying purely for investment and the rental numbers work. This fits Yreka investors expanding portfolios, out-of-state buyers, or anyone who doesn't want to expose personal finances. The property must generate enough rent to cover the mortgage payment.
Many Siskiyou County investors start with bank statement loans for their first rental, then switch to DSCR as they scale. Once you own multiple properties, isolating each deal's income makes underwriting faster and cleaner.
Yes. You could use a bank statement loan for your primary home and DSCR loans for rental properties simultaneously. Lenders evaluate each loan independently.
Bank statement loans typically price 0.25% to 0.5% lower than DSCR loans. Rates vary by borrower profile and market conditions.
Yes, up to four units. Bank statement loans require you to occupy one unit. DSCR loans let you rent all units out.
Bank statement loans take 3-4 weeks due to income analysis. DSCR loans close faster, often in 2-3 weeks, since there's less documentation.
Yes. Investors often refinance from bank statement loans into DSCR loans once the property has rental history and they want to simplify documentation.