Two loans, side by side — qualifying method, down payment, credit, rates, and exactly who should choose which. Built for self-employed, investor, and newcomer borrowers weighing their options.
The core self-employed decision: qualify on deposits (and skip the write-off problem) or on tax-return net income at the best rate.
Investment-property financing: qualify on the property's rent (no personal income docs) or on your own income at a lower rate.
The newcomer fork: no Social Security number routes you to ITIN portfolio loans; a valid SSN + work authorization opens low-down-payment FHA.
Two non-QM paths: convert a large liquid portfolio into income, or qualify on business deposits. Asset-rich vs. cash-flow-rich.
The entry-level decision: FHA's low credit bar and 3.5% down vs. conventional's lower long-run cost and cancelable PMI.
Self-employed with heavy write-offs vs. a small down payment: deposits-based qualifying vs. FHA's low 3.5% entry but tax-return income.
Two no-tax-return paths: a CPA-prepared profit-and-loss statement vs. 12–24 months of deposits. Margins-on-paper vs. money-in-the-bank.
For eligible veterans: VA's 0% down and no PMI vs. conventional's broader use cases. Usually VA wins when you qualify.
Both non-QM, but for different goals: DSCR qualifies an investment property on its rent; bank statement qualifies you on your business deposits.
Above or below the conforming loan limit: jumbo's stricter credit-and-reserve bar vs. conforming's lower requirements.
In-depth comparison guide.
In-depth comparison guide.