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in Waterford, CA
Both loans skip traditional income docs. That's where the similarity ends.
Bank statement loans work for self-employed borrowers. DSCR loans work for rental investors. Knowing the difference saves you time.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders average your deposits and back out a business expense ratio.
This works well for contractors, consultants, and small business owners in Waterford whose tax returns show heavy write-offs.
DSCR loans qualify you based on the rental property's income — not yours. The property needs to cover its own debt payments.
A DSCR above 1.0 means the rent exceeds the mortgage payment. Most lenders want 1.1 or higher to approve the deal.
Bank statement loans look at you. DSCR loans look at the property. That's the core difference between these two programs.
DSCR loans are investment-only. Bank statement loans can fund a primary residence, second home, or investment property.
Buying a home to live in and self-employed? Bank statement loan. Buying a rental and want to keep your personal finances out of it? DSCR.
Some Waterford investors use both. They finance their own home with a bank statement loan and their rentals with DSCR. We structure deals both ways.
No. DSCR loans are for investment properties only. For a primary residence, a bank statement loan is the better fit.
Most lenders want a 640 or higher for bank statement loans. Some go lower, but your rate improves significantly above 700.
Most lenders want a DSCR of 1.1 or higher. Some allow 1.0, but that typically comes with a higher rate.
Both carry higher rates than conventional loans. Rates vary by borrower profile and market conditions. Call us to compare.
Yes. Some investors carry a bank statement loan on their home and DSCR loans on their rentals simultaneously.
Non-QM lenders typically move slower than conventional. Plan for 20 to 30 days depending on the lender and file complexity.