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in Sonoma, CA
Sonoma's real estate market keeps moving. Apple just opened its new store at Montgomery Village, and over 20 restaurants are launching across the county in 2026.
Both programs let you qualify on actual cash flow instead of tax returns. The difference lies in how they measure what you earn, what you put down, and how much you can borrow.
Bank statement loans let you prove income straight from your bank account. Instead of tax returns, lenders pull 24 months of statements and average your deposits.
You'll typically put 15% to 25% down. Credit requirements usually start around 620 FICO, though stronger scores get better terms. The loan caps at the 2026 conforming limit of $897,000 in Sonoma County, so jumbo purchases need a different path.
DSCR loans flip the qualification model. Instead of proving your personal income, you prove the rental property itself generates enough cash flow to cover the mortgage.
Down payments run 20% to 25% on investment properties. Credit requirements sit around 620 FICO minimum, though 680+ opens better pricing.
Bank statement loans care about your personal cash flow. DSCR loans care about the property's income. If you're buying a home to live in and need to prove you can pay the mortgage, bank statement wins.
Down payments differ slightly. Bank statement loans often accept 15% down; DSCR typically requires 20% minimum. Both programs work within the $897,000 conforming limit in Sonoma County.
DSCR loans don't care about your personal tax returns at all. Bank statement loans do—they just don't require them to match your deposits perfectly.
Pick bank statement loans if you're self-employed, own a business, or freelance—and you're buying a home to live in. Your bank deposits prove you have the cash to make payments. You can put down 15% and qualify on actual money moving through your account.
Pick DSCR loans if you're buying an investment property and the rental income will cover the mortgage. You don't need to prove personal income at all. The property itself qualifies.
Yes, but DSCR loans are usually better for rentals. Bank statement loans work on your personal income; DSCR loans work on the property's rental income. If you're buying a rental, DSCR lets the property's lease prove it can carry the debt.
No. Bank statement loans don't require tax returns to match your deposits. Lenders average 24 months of bank deposits instead. This works for business owners who've written off expenses or taken deductions that reduced their tax liability.
Typically 20% for investment properties. Some lenders go as low as 15% with strong credit and a solid debt-service coverage ratio. The property's rental income has to cover at least 75% of the mortgage payment.
No. The 2026 conforming limit in Sonoma County is $897,000. Purchases above that need a jumbo loan, which has stricter rules and higher rates. Jumbo lenders have their own qualification standards.
Both typically close in 30 to 45 days. Bank statement loans need 24 months of statements verified. DSCR loans need lease agreements or rental history verified. Speed depends more on how quickly you gather documents than on the program itself.