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in Visalia, CA
Visalia's rental market draws investors and self-employed buyers who don't fit traditional lending boxes. Both bank statement and DSCR loans skip W-2 income verification, but they serve different purposes.
Bank statement loans qualify you based on personal income shown in your accounts. DSCR loans qualify based solely on the property's rental income potential.
Bank statement loans analyze 12 to 24 months of business or personal account deposits to calculate your income. Lenders typically use 50% of average monthly deposits as qualifying income after accounting for business expenses.
This works for self-employed Visalia borrowers buying a primary residence, second home, or investment property. You need decent credit — usually 620 minimum — and enough consistent deposits to support the mortgage payment.
DSCR loans ignore your personal income completely. The lender divides the property's projected rent by the total monthly housing payment to get a ratio — usually needs to be 1.0 or higher to qualify.
This is strictly for investment properties in Visalia. Your tax returns, pay stubs, and employment don't matter. The property itself has to support the debt through rental income.
The fundamental split: bank statement loans qualify you as a borrower, DSCR loans qualify the property as an asset. If you're self-employed buying a home to live in, bank statement is your only option here.
Rates vary by borrower profile and market conditions, but DSCR loans often carry slightly lower rates because the underwriting is simpler. Bank statement loans require more documentation review and carry more lender risk around income calculation.
Choose bank statement loans if you're self-employed and need financing for a primary residence or vacation home in Visalia. Also works if you're buying a rental but your business income is stronger than the rental income.
Choose DSCR if you're adding to an investment portfolio and the property rents well enough to cover its payment. Your personal income could be zero — the property carries the deal. This is cleaner for investors with multiple properties who don't want every purchase tied to personal finances.
Yes. Bank statement loans work for investment properties, primary homes, and second homes. You qualify based on your business income, not the rental income.
No. DSCR loans skip tax returns and income verification entirely. The lender only evaluates the property's rent versus the mortgage payment.
DSCR loans often price slightly better due to simpler underwriting. Rates vary by borrower profile and market conditions for both programs.
Yes. DSCR loans scale well for portfolio investors since each property qualifies independently. No income recalculation across multiple deals.
Bank statement loans typically start at 10-15% down. DSCR loans usually require 20-25% down for investment properties.