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in Cotati, CA
Both loans skip traditional income docs. That's where the similarity ends.
Self-employed buyers and rental investors both land in Cotati — but they need very different financing tools.
Bank Statement Loans are built for self-employed borrowers. Lenders use 12 to 24 months of deposits to calculate your income.
You can buy a primary home, second home, or investment property. Your business revenue does the qualifying — not your tax write-offs.
DSCR Loans ignore your personal income entirely. Lenders look at the rental property's income versus its monthly debt payment.
A DSCR above 1.0 means the property covers its own debt. Many lenders want 1.20 or higher for the best terms.
Bank Statement Loans tie qualification to you. DSCR Loans tie qualification to the property. That's a fundamental split.
Down payments differ too. Bank Statement Loans typically start at 10% down. DSCR Loans usually require 20–25% since they're investment-only.
Buying a home to live in? Bank Statement is your only path here. DSCR doesn't apply to owner-occupied properties.
Adding a rental in Cotati to your portfolio? DSCR is cleaner. No income docs, no personal DTI headaches — just run the numbers on the property.
No. DSCR Loans are for investment properties only. For a home you'll live in, you'd need a Bank Statement Loan.
Most lenders want 660+ for Bank Statement Loans and 680+ for DSCR. Stronger scores mean better rates on both. Rates vary by borrower profile and market conditions.
Either can work. DSCR is simpler since lenders ignore your personal income. We'd compare both options for your deal.
They divide the property's monthly rent by its total monthly debt payment. A ratio above 1.0 means the rent covers the mortgage.
Yes. Non-QM loans carry higher rates than conventional financing. The tradeoff is qualifying without tax returns. Rates vary by borrower profile and market conditions.
Most lenders want 12 months minimum. Some require 24. Business accounts are analyzed separately from personal accounts.