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in Porterville, CA
Self-employed borrowers and real estate investors in Porterville often hit walls with traditional mortgage requirements. Bank statement and DSCR loans both solve income verification problems, but they target completely different scenarios.
Bank statement loans work for business owners who need to occupy the property or want a second home. DSCR loans only work for pure investment properties where you won't live in the unit.
Most Porterville brokers push one product over the other based on what they have access to. We offer both and pick based on your actual situation, not our inventory.
Bank statement loans verify income using 12 to 24 months of personal or business bank deposits. Underwriters calculate your average monthly income by analyzing the cash flow through your accounts.
You can use these for primary residences, second homes, or investment properties in Porterville. That flexibility matters when you're buying a duplex and living in one unit while renting the other.
Credit score minimums typically start at 620, though most lenders prefer 640 or higher. Down payments run 10% to 20% depending on property type and credit profile.
DSCR loans ignore your personal income entirely. Underwriters only care about one number: does the property's rental income cover the mortgage payment plus taxes and insurance?
The debt service coverage ratio divides monthly rent by the total monthly housing payment. Most lenders want to see 1.0 or higher, meaning rent fully covers the payment.
You can close DSCR loans in an LLC or personal name. Credit minimums usually sit at 640, and you need 20% to 25% down depending on the property and your experience as an investor.
Bank statement loans require proof of your personal income through deposits. DSCR loans never look at your income at all, only what the property generates in rent.
Property type creates the biggest restriction. Bank statement works for any occupancy type in Porterville including homes you live in. DSCR only works for properties you rent to tenants.
DSCR loans typically come with slightly higher rates because lenders view pure investment properties as riskier. Bank statement rates run closer to conventional mortgages when you're owner-occupying.
Choose bank statement loans when you're buying a home to live in or need financing for a second property. Self-employed borrowers buying a house in Porterville to occupy should default to this option.
Pick DSCR when you're adding to an investment portfolio and the numbers work. If you're buying a rental property and the rent covers the payment, DSCR often approves faster with less paperwork.
Some Porterville investors qualify for both but choose DSCR to keep personal finances separate from investment deals. That separation matters when you're scaling a rental portfolio across Tulare County.
Yes, bank statement loans work for investment properties. But if you're not occupying it, DSCR often makes more sense with simpler documentation.
No, DSCR loans don't look at your personal tax returns at all. Underwriters only need a rent analysis or existing lease for the property.
Bank statement loans typically offer slightly better rates for owner-occupied properties. DSCR rates run higher due to investment property risk. Rates vary by borrower profile and market conditions.
No, each DSCR loan evaluates one property's income against that property's payment. You can't use rent from other properties to qualify.
Underwriters average deposits over 12 or 24 months to smooth out fluctuations. Large one-time deposits are typically excluded from income calculations.
Neither requires formal landlord experience, but first-time investors often face higher down payment requirements on DSCR loans.