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in Woodlake, CA
Both bank statement and DSCR loans skip traditional income verification. The choice depends on whether you're buying your residence or an investment property in Woodlake.
Bank statement loans work for self-employed borrowers buying a home they'll occupy. DSCR loans are built exclusively for real estate investors who qualify on rental income alone.
Bank statement loans analyze 12 to 24 months of business or personal account deposits. Lenders calculate income by averaging those deposits, typically applying a 50% expense ratio for self-employed borrowers.
You can buy a primary residence, second home, or investment property with this loan. Most lenders require 10-20% down and accept credit scores starting around 620.
This works well for contractors, farmers, and small business owners in Tulare County who show strong deposits but limited tax returns. Your bank activity becomes your proof of income.
DSCR loans qualify you based solely on rental income the property generates. Lenders divide the monthly rent by the monthly payment to calculate the debt service coverage ratio.
You need a ratio above 1.0 for most approvals, though some lenders accept 0.75 with larger down payments. Your personal income, tax returns, and employment never enter the equation.
This loan only works for investment properties. You cannot use it for a home you plan to occupy, even part-time.
Bank statement loans care about your business income. DSCR loans care about the property's rental income. That's the fundamental split.
Bank statement loans allow you to live in the property. DSCR loans do not. If you're buying a primary residence in Woodlake, only bank statement loans apply.
DSCR loans typically require larger down payments—20-25% compared to 10-20% for bank statements. But DSCR underwriting is faster because lenders skip your personal financials entirely.
Use bank statement loans if you're self-employed and buying a home to live in. Use DSCR loans if you're building a rental portfolio and want to scale without income verification slowing you down.
For Woodlake investment properties, DSCR often makes more sense. You avoid personal income scrutiny and can layer multiple deals without hitting debt-to-income walls.
If you run a business with strong cash flow and want to buy your residence, bank statement loans let you qualify on deposits instead of taxable income. Choose the tool that matches your property purpose.
Yes, bank statement loans work for investment properties. But DSCR loans often make more sense for rentals because they ignore your personal income entirely.
Rates vary by borrower profile and market conditions. DSCR loans sometimes price slightly higher due to investor-only use, but the gap is usually narrow.
Neither requires tax returns for income verification. Bank statement loans use deposits, while DSCR loans use a rent schedule or appraisal.
Some lenders accept ratios as low as 0.75 with compensating factors like larger down payments or strong reserves. Most prefer 1.0 or higher.
DSCR loans typically close faster because underwriters skip personal income verification. Bank statement loans need 12-24 months of statements reviewed.