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in Davis, CA
Both loans skip traditional income docs. But they serve very different borrowers.
Davis has a strong rental market near UC Davis. That makes both products relevant here — just for different goals.
Bank Statement Loans use 12 to 24 months of deposits to prove income. No tax returns. No pay stubs.
This is the go-to loan for self-employed borrowers whose write-offs crush their taxable income. Your bank shows what you actually earn.
DSCR Loans qualify you based on the property's rent — not your income. Lenders look at rent versus the mortgage payment.
A DSCR of 1.0 means rent covers the payment. Most lenders want 1.1 or higher. Davis rentals near campus often hit that.
Bank Statement Loans look at you — your deposits, your credit, your debt load. DSCR Loans look at the property.
Both carry higher rates than conventional. But DSCR loans are easier to scale. You can own ten rentals and qualify on each one independently.
Buying a home in Davis to live in? Bank Statement is your path if you're self-employed with strong deposits.
Buying a rental near UC Davis? Run the DSCR numbers first. If the rent covers the payment, you may not need income docs at all.
No. DSCR is investment property only. For a primary residence, you'd need Bank Statement or another program.
Yes. Both are non-QM but lenders still check credit. Higher scores get better rates. Rates vary by borrower profile and market conditions.
DSCR often moves faster. There's no income analysis — just lease docs and an appraisal with a rent schedule.
Yes. Bank Statement Loans work for investment properties too. But if the rent covers the mortgage, DSCR might get you a better structure.
Most want 1.1 or higher. That means rent must exceed the mortgage payment by at least 10%.
DSCR loans commonly close in an LLC. Bank Statement Loans usually require an individual borrower on the note.