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in Dixon, CA
Dixon investors and self-employed buyers often need alternatives to traditional mortgages. Both bank statement and DSCR loans skip W-2 verification, but they solve different problems.
Bank statement loans work for business owners buying primary homes or investment properties. DSCR loans focus exclusively on rental property cash flow, ignoring personal income entirely.
Bank statement loans verify income through 12 to 24 months of business or personal bank deposits. Lenders calculate your qualifying income by averaging monthly deposits, then applying a percentage based on your expense ratio.
Self-employed borrowers who write off most income on tax returns use these loans. You can buy primary homes, second homes, or investment properties in Dixon with this program.
DSCR loans qualify you based solely on the rental property's income potential. Lenders divide monthly rent by the mortgage payment to calculate the debt service coverage ratio—typically needing 1.0 or higher.
Your personal income, employment, and tax returns don't matter. The property either generates enough rent to cover its payment or it doesn't. This works for Dixon investors buying single-family rentals or small multifamily buildings.
Bank statement loans verify your ability to earn income through business activity. DSCR loans verify the property's ability to support itself through rent. One focuses on you, the other focuses on the asset.
Bank statement loans require full documentation of your deposits and business operations. DSCR loans need a lease agreement or rent schedule—no one scrutinizes your personal finances or asks for tax returns.
Choose bank statement loans if you're self-employed and buying a home to live in Dixon. Also use them if you want rental properties but have inconsistent business deposits that average higher than your tax returns show.
Choose DSCR loans if you're buying Dixon rental properties and want zero personal income documentation. This works especially well for high-income professionals who don't want to share tax returns, or investors with multiple properties who've maximized their debt-to-income ratio.
Yes, bank statement loans work for investment properties. You'll still qualify based on your business deposits, not the property's rental income.
No, DSCR loans don't ask for personal or business tax returns. Lenders only review the property's rent potential and your credit score.
Rates vary by borrower profile and market conditions. Both typically price 1-2 points above conventional loans, with DSCR sometimes slightly higher.
Yes, you can have a bank statement loan on your primary home and DSCR loans on rental properties simultaneously.
Most lenders want 680+ for bank statement loans and 700+ for DSCR loans. Some go lower with higher down payments.