Loading
in Sonora, CA
Both bank statement and DSCR loans work for Sonora borrowers who can't use W-2s. The difference comes down to what you're buying and how you earn income.
Bank statement loans qualify you based on personal deposits. DSCR loans ignore your income entirely and look only at the rental property's cash flow.
Bank statement loans pull income from 12 to 24 months of business or personal bank deposits. Lenders calculate average monthly deposits and apply a percentage to determine qualifying income.
These work for self-employed Sonora buyers purchasing primary homes, second homes, or investment properties. You need consistent deposits and decent credit, typically 620 or higher.
DSCR loans qualify based strictly on rental income divided by the property's monthly debt. If the property generates enough rent to cover the mortgage payment, you're approved regardless of personal income.
Your job, tax returns, and pay stubs don't matter. Lenders care only whether the Sonora rental property supports itself financially through tenant income.
Bank statement loans require proving your personal income through deposits. DSCR loans require proving the property pays for itself through rent.
Bank statement works for any property you'll own. DSCR only works for investment rentals. Bank statement needs consistent deposit history. DSCR needs a lease or rental market analysis showing adequate income.
Use bank statement loans if you're self-employed and buying a home to live in around Sonora. Also use them for second homes or rentals when you want one loan program for multiple property types.
Use DSCR loans if you're buying Tuolumne County investment property and don't want to document personal income. They're faster for investors with complex tax situations or multiple income sources.
Yes, bank statement loans work for investment properties. You'd qualify based on your personal deposit history rather than the property's rental income.
DSCR loans typically close faster for investors since they skip personal income verification. Bank statement loans need 12-24 months of statements reviewed.
Down payments vary by lender and borrower profile for both programs. Investment properties typically need 20-25% down regardless of which loan you choose.
No, DSCR loans only work for investment properties. If you're occupying the home, you need a bank statement loan or traditional financing.
Rates vary by borrower profile and market conditions. Both are non-QM loans with similar pricing, though DSCR rates may edge lower for strong rental properties.