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in Vallejo, CA
Both loans skip W-2s and tax returns. That's where the similarity ends.
One is built for self-employed borrowers buying any property. The other is built for investors qualifying on rent income alone.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average those deposits and apply an expense factor to arrive at qualifying income.
This loan works for self-employed borrowers whose tax returns show heavy write-offs. If your Schedule C makes your income look tiny, bank statements tell a better story.
DSCR loans qualify you based on the rental income a property generates — not your personal income at all. Lenders calculate the Debt Service Coverage Ratio: monthly rent divided by monthly mortgage payment.
A DSCR of 1.0 means rent covers the payment exactly. Most lenders want 1.1 or higher. Vallejo's rental market can make this math work, especially on multi-unit properties.
Bank statement loans look at YOU — your deposits, your credit, your debt load. DSCR loans look at the PROPERTY — what it rents for versus what it costs to carry.
Owner-occupied purchases need a bank statement loan. DSCR only applies to investment properties. That single factor narrows the choice fast.
Buying a home to live in and self-employed? Bank statement loan. Buying a rental in Vallejo and want your personal income kept out of it? DSCR loan.
Some investors use both. They buy their primary residence with a bank statement loan, then stack rentals using DSCR. We structure deals this way regularly at SRK CAPITAL.
No. DSCR loans are for investment properties only. For a primary residence, a bank statement loan is the right non-QM option.
Both are Non-QM, but DSCR loans often allow slightly lower scores. Requirements vary by lender — we shop across 200+ wholesale lenders to find the best fit.
Most lenders want at least 12 to 24 months of self-employment history. Some require a CPA letter confirming your business is active.
Yes. Many DSCR lenders allow LLC vesting, which is useful for investors who hold rentals in a business entity.
Expect 10% to 20% down for bank statement loans. DSCR loans typically start at 20% to 25% down for investment properties.
DSCR loans often close faster because underwriters focus on the property, not personal financials. Less documentation means fewer back-and-forth requests.