Loading
in Dinuba, CA
Self-employed borrowers and real estate investors in Dinuba often can't use traditional W-2 income verification. Bank statement loans and DSCR loans both skip tax returns, but they verify ability to pay in completely different ways.
Bank statement loans prove your income through business deposits. DSCR loans ignore your income entirely and focus on rental cash flow. Most Dinuba borrowers qualify for one but not both.
Bank statement loans use 12 or 24 months of business or personal bank deposits to calculate your qualifying income. Lenders apply a percentage to your total deposits after subtracting business expenses.
You need steady deposits, reasonable debt-to-income ratios, and typically 10-20% down. Credit score minimums start around 620-640. This works for self-employed borrowers buying primary homes, second homes, or investment properties in Dinuba.
DSCR loans qualify you based solely on the rental property's income versus its monthly debt. Lenders divide the monthly rent by the PITI payment to get a ratio. Most require 1.0 or higher, meaning rent covers the full payment.
Your personal income doesn't matter at all. Tax returns aren't reviewed. You need 20-25% down and the property must be an investment rental. DSCR loans don't work for primary residences or second homes in Dinuba.
Bank statement loans verify your ability to pay from business income. DSCR loans verify the property's ability to pay for itself. If you're buying a primary home in Dinuba, only bank statement loans work.
Bank statement loans require proving income consistency through deposits. DSCR loans require proving rent covers expenses through a lease or market rent analysis. Rates vary by borrower profile and market conditions, but both typically run 1-2% above conventional rates.
Choose bank statement loans if you're self-employed and buying a home to live in, or if your rental properties don't generate strong cash flow yet. You need consistent business deposits and reasonable overall debt.
Choose DSCR loans if you're buying rental property in Dinuba and the rent easily covers the payment. Your personal income could be inconsistent or hard to document. The property just needs to break even or better on paper.
Yes. Bank statement loans work for investment properties, primary homes, and second homes. You'll still need to prove income through deposits.
No. DSCR loans don't review your tax returns or personal income at all. Approval depends entirely on the property's rental income versus expenses.
Rates vary by borrower profile and market conditions. Both typically price similarly, 1-2% above conventional loans, with pricing based on credit and down payment.
No. DSCR loans only work for investment rental properties. For a primary residence or second home, you need bank statement or another program.
Use a bank statement loan instead. DSCR requires rent to cover the full payment. Bank statement loans let your other income make up the difference.
DSCR loans often close slightly faster because they don't require detailed income documentation. Bank statement loans need deposit records reviewed and verified.