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in Rio Vista, CA
Rio Vista sits between the Bay Area and Sacramento, drawing both self-employed buyers and rental investors. Most use non-QM loans because traditional lenders won't approve them.
Bank statement and DSCR loans both skip W-2 verification, but they qualify you differently. One focuses on your business deposits, the other on rental income potential.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Lenders average your deposits and apply a percentage to determine qualifying income.
These work best for business owners with steady deposits but tax write-offs that tank their tax return income. You need 10-20% down and credit above 600 for most programs.
DSCR loans ignore your personal income entirely and qualify you on the property's rental income. Lenders divide monthly rent by the mortgage payment to get your debt service coverage ratio.
You need a ratio above 1.0 for most deals, meaning rent covers the full payment. These work only for investment properties, never owner-occupied homes.
Bank statement loans look at your business cash flow. DSCR loans look at the property's cash flow. That's the fundamental split between these programs.
Credit and down payment requirements run similar, but property type makes the call. Buying a primary home in Rio Vista? You need bank statements. Buying a rental? DSCR might offer better terms.
Use bank statement loans if you're self-employed and buying a home to live in. Use DSCR if you're buying a rental property and don't want to show personal income.
Some Rio Vista investors use both loan types across different properties. The choice depends on whether you want to live there or rent it out. Portfolio lenders often let you stack multiple DSCR loans without income verification.
Yes, bank statement loans work for investment properties. But DSCR loans often offer better terms for rentals since they don't require personal income verification.
Rates run similar for both, typically 1-2% above conventional. Your credit score and down payment affect pricing more than the loan type.
Yes, most lenders want 6-12 months of reserves. DSCR loans sometimes require more reserves than bank statement loans for the same property.
Yes, lenders use market rent estimates for the property. You don't need landlord experience or existing rental income to qualify.
Lenders average 12-24 months, so occasional dips won't kill your approval. But seasonal businesses need to show enough annual average to support the payment.