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in Healdsburg, CA
Healdsburg's mix of vacation rentals and wine country estates creates demand for flexible financing. Both bank statement and DSCR loans bypass W-2 income verification, but they serve different borrowers.
Bank statement loans work for self-employed buyers purchasing a primary residence or second home. DSCR loans fund investment properties based solely on rental income, not your tax returns.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits to calculate income. Lenders typically use 50% of deposits as qualifying income for businesses with high expenses, or up to 100% for service-based businesses.
You need at least 10% down, though 20% gets better rates. Credit requirements start around 620, but most approvals happen above 680. These loans work for primary homes, second homes, and investment properties in Healdsburg.
DSCR loans ignore your personal income entirely. Lenders divide the property's monthly rental income by its monthly debt payment (mortgage, taxes, insurance, HOA). A ratio above 1.0 means the property pays for itself.
Most lenders require 20-25% down and credit scores above 660. You can close in an LLC, which protects personal liability. DSCR loans only finance investment properties, not homes you plan to occupy.
The biggest split is property use. Bank statement loans fund homes you live in or rent out. DSCR loans only work for pure investments where you never occupy the property, even part-time.
Income source matters just as much. Bank statement loans require active business income flowing through accounts. DSCR loans need rental income from the specific property you're buying, verified by an appraisal with rent comparables.
Use a bank statement loan if you're self-employed and buying a home to live in, whether full-time or seasonally. It also works for Healdsburg investors who own multiple rental properties but show low taxable income due to depreciation and business write-offs.
Choose DSCR if you're buying a rental property and either don't have business bank statements or prefer not to qualify based on personal income. DSCR shines for buyers with strong cash reserves but complex tax returns, or those scaling a rental portfolio quickly.
No. A property is either owner-occupied or investment-only. If you occupy it at all, bank statement loans apply. If it's purely rental, you can choose either based on your income situation.
Rates vary by borrower profile and market conditions. DSCR rates run slightly higher due to investor risk, but strong credit and larger down payments narrow the gap. Rates vary by borrower profile and market conditions.
Yes, if you never occupy the property personally. Lenders use projected rental income from the appraisal based on comparable short-term rental performance in the area.
Most lenders want a DSCR of at least 1.0, meaning rent covers the full payment. Some programs go down to 0.75 DSCR with larger down payments and higher rates.
Yes. Once you convert your property to a full-time rental, you can refinance into a DSCR loan. Just establish at least six months of rental income history first.