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in Suisun City, CA
Self-employed borrowers and real estate investors in Suisun City often hit a wall with traditional mortgages. Bank statement and DSCR loans both skip W-2s and tax returns, but they serve completely different purposes.
Bank statement loans focus on your business cash flow. DSCR loans care only about rental income from the property itself.
Choosing the wrong one costs you time and money in a competitive Solano County market. Here's how to pick the right path for your Suisun City purchase.
Bank statement loans use 12 or 24 months of personal or business bank deposits to calculate qualifying income. Lenders average your deposits and apply an expense ratio, typically 25-50%, to determine your actual income.
You need consistent deposits and decent credit, usually 620 minimum. These work for self-employed professionals, business owners, or freelancers buying primary homes or investment properties in Suisun City.
Rates run 1-2% higher than conventional loans. Down payment starts at 10% for primary homes, 15-20% for investment properties.
DSCR loans qualify you based solely on rental income compared to the property's debt obligations. If rent covers the mortgage payment, taxes, insurance, and HOA by at least 1.0x, you can qualify without proving personal income.
You can close in an LLC. You can own 20 rental properties already. Your tax returns don't matter at all.
Minimum credit is usually 640. Down payment starts at 20%, sometimes 25% if your DSCR ratio is under 1.0. Rates run similar to bank statement loans, 1-2% above conventional.
Bank statement loans verify your ability to pay from business income. DSCR loans verify the property's ability to pay for itself from rent.
Bank statement works for any property you'll live in or rent out. DSCR is investment properties only, never primary residences or second homes.
DSCR lets you buy unlimited properties without your debt-to-income ratio mattering. Bank statement loans count all your existing debts like a traditional mortgage would.
Bank statement requires consistent monthly deposits. DSCR just needs an appraisal showing market rent covers the payment.
Choose bank statement if you're self-employed buying a primary home in Suisun City or want lower down payments on a rental. Choose DSCR if you're buying pure investment property and want your personal finances completely separated.
DSCR makes sense for high-income earners who show losses on tax returns or investors scaling a rental portfolio. Bank statement fits contractors, consultants, or business owners with solid deposit history buying their own home.
Both loans close in 30-45 days with the right documentation. Rates vary by borrower profile and market conditions, but expect similar pricing between the two.
Yes, bank statement loans work for investment properties. You'll need 15-20% down and lenders will count the rental income plus your bank statement income for qualifying.
No. DSCR loans never ask for personal or business tax returns. The property's appraised rent is the only income that matters.
Rates run nearly identical for both, typically 1-2% above conventional. Your credit score and down payment matter more than which non-QM program you choose.
Most bank statement lenders require personal names on title. DSCR loans allow LLC ownership, which is better for liability protection on rentals.
Bank statement usually requires 620 minimum. DSCR typically needs 640, though some lenders go to 620 with 25% down.
Both close in 30-45 days with complete documentation. DSCR can be faster since there's less income verification involved.