How do you find the right loan structure?
The right loan structure depends on how you document income, how you use the property, and whether you want a rate that stays the same or one that can change after an initial period. Bank-statement loans review deposits in your accounts. DSCR loans are sized mainly on a rental property's income. A fixed-rate loan keeps the same rate for the term; an adjustable-rate mortgage (ARM) can adjust after an initial period. Turn Times, a licensed mortgage broker (NMLS #2099552), compares participating wholesale lenders' bank-statement, DSCR, fixed-rate, and ARM options for California and Colorado borrowers. The lender you choose underwrites, approves, and funds the loan.
Key facts
- October rate-lock volume fell 19% from September, even after a late-month decline in rates, according to Optimal Blue's Market Advantage report as covered by National Mortgage Professional. (National Mortgage Professional, November 10, 2026)
- In that same Optimal Blue data, ARMs reached a record share of locks (the series goes back to 2019), and Non-QM loans accounted for about 12% of October lock activity.
- Within Non-QM, investor and DSCR loans made up about 35% of that activity, and bank-statement loans made up about 32%, according to the same report.
- Those figures are third-party market data. They are not Turn Times rates, terms, or production numbers, and they are not a forecast.
- A fixed-rate mortgage has the same interest rate for the life of the loan. An ARM has an introductory period, then the rate can move, subject to the loan's caps and the index named in your documents. (CFPB: What is an adjustable-rate mortgage?)
- Bank-statement and DSCR loans are types of Non-QM financing. They use different income documentation than a standard conventional loan.
- Turn Times may charge an origination fee. All fees are disclosed in your loan documents.
What October's lock data is showing
Fewer borrowers locked loans in October, but the borrowers who did were more often using an ARM or a Non-QM program. National Mortgage Professional, citing Optimal Blue, framed that mix as a reminder that loan structure can matter as much as the broader rate environment.
That does not mean an ARM or a Non-QM program is the right fit for every file. It does mean it is worth asking which structure matches how you earn income and how you plan to use the property, then comparing offers for that structure.
Loan structures at a glance
| Structure | What it is | Often considered when… | |---|---|---| | Fixed-rate loan | The interest rate stays the same for the term | You want a payment that does not change because the rate changed | | Adjustable-rate mortgage (ARM) | The rate is set for an initial period, then can adjust on a schedule | You want to compare an introductory rate and caps with a fixed-rate option for the same scenario | | Bank-statement loan | Income is documented with bank deposits, not only tax returns | You are self-employed or an independent contractor and your tax returns do not show the full picture of cash flow | | DSCR loan | The loan is sized mainly on the property's rental income | You are financing a rental and want the property's rent to be the primary income test |
This is general education, not a recommendation. Terms, available amounts, and eligibility are set by each lender.
Bank-statement loans
A bank-statement loan lets some self-employed borrowers and independent contractors document income with personal or business account statements. Lenders typically review a set number of months of deposits, then apply their own calculations and conditions.
These programs can be used for a purchase or a refinance, and some lenders also offer a bank-statement HELOC. They are not a way to skip underwriting. The lender still reviews the property, your assets, and the rest of the file.
For a fuller walkthrough, see bank-statement loans in California and Colorado.
DSCR loans
A DSCR (debt service coverage ratio) loan is designed for investment property. The lender looks mainly at whether the property's rental income is enough to cover the proposed loan payment, rather than relying only on the borrower's personal income.
DSCR programs may be used to purchase a rental or to take cash out by refinancing one you already own. Some programs allow the property to be held in an LLC. See what a DSCR loan is and DSCR loans in California and Colorado.
If you want a line of credit on a rental instead of replacing the first loan, compare that path with a HELOC on an investment property.
ARM vs. fixed: the basics
On a fixed-rate loan, the interest rate does not change. Your principal-and-interest payment stays the same if you do not refinance or recast the loan.
On an ARM, the rate is fixed for an introductory period (for example, the first several years). After that, it can adjust on a set schedule, using an index named in your loan documents plus a margin, within the loan's adjustment caps. Ask which index the loan uses; many newer adjustable-rate mortgages use a SOFR-based index. (CFPB: What is an adjustable-rate mortgage?; CFPB: consumer handbook on adjustable-rate mortgages)
When you compare an ARM with a fixed-rate loan, line up the same loan amount and, as much as possible, the same term. Then review:
- How long the introductory rate lasts
- How often the rate can adjust after that
- The periodic and lifetime caps
- What index the loan uses
- How the Loan Estimate's projected payments change after the introductory period
An ARM is not automatically a closer fit because its share of locks rose in October. Compare the disclosures side by side for your scenario.
How a broker fits in
A mortgage broker does not lend money and does not approve the loan. A broker can compare bank-statement, DSCR, fixed-rate, and ARM programs from participating wholesale lenders and explain the trade-offs. See what a wholesale mortgage broker does and how to compare Loan Estimates.
Related: Non-QM home equity · DSCR loans · Home equity options · Licensing and disclosures
Timelines vary by lender, property, appraisal, and underwriting.
Common questions
What is a bank-statement loan?
It is a Non-QM loan that documents income with bank deposits, often used by self-employed borrowers and independent contractors. The lender still underwrites the file and the property.
What is a DSCR loan?
It is a loan for investment property that is sized mainly on the property's rental income, rather than only on the borrower's personal income. Rules vary by lender.
What is the difference between a fixed-rate loan and an ARM?
A fixed-rate loan keeps the same interest rate for the term. An ARM keeps a set rate for an introductory period, then can adjust based on an index, a margin, and the caps in your loan documents.
Did more people use ARMs and Non-QM loans in October?
Optimal Blue's October data, as reported by National Mortgage Professional, showed a record ARM share of locks and Non-QM activity around 12% of locks, even as overall lock volume fell. That is market context, not a reason to choose a structure on its own.
Does Turn Times make bank-statement or DSCR loans?
No. Turn Times is a licensed mortgage broker, not a lender. The lender you choose underwrites, approves, and funds the loan.
Next step
Want to compare how participating wholesale lenders would structure a bank-statement, DSCR, fixed-rate, or ARM option for your California or Colorado scenario? Schedule a Loan Options Consultation at /schedule or call 844-999-8876. A consultation is a no-obligation educational conversation, not a credit decision.
Sources
- National Mortgage Professional: Mortgage locks, ARM share, and Non-QM, October 2026 (citing Optimal Blue Market Advantage)
- CFPB: What is an adjustable-rate mortgage (ARM)?
- CFPB: Consumer handbook on adjustable-rate mortgages
- CFPB: What is the difference between a mortgage lender and a mortgage broker?
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