Question 1

Can I use a DSCR loan to buy a primary home in Alameda?

Accepted Answer

No. DSCR loans are built for investment properties. If you are buying a primary home, bank statement or another loan for a home you plan to live in is the better path.

Question 2

What credit score do I need for either loan?

Accepted Answer

Most lenders want around 660 or higher for both. Some go lower, but pricing usually gets noticeably worse below 680 and improves again once you move above 700.

Question 3

Do bank statement loans require a larger down payment?

Accepted Answer

Usually, yes. Expect 10% to 20% down in many cases, depending on credit score and loan size. Rates vary by borrower profile and market conditions.

Question 4

What DSCR ratio do lenders in Alameda require?

Accepted Answer

Most want 1.0 or higher. If the ratio is below that, the rent does not fully cover the housing payment, and the loan usually gets harder or more expensive. In Alameda, strong pricing often shows up once the ratio is comfortably above break-even.

Question 5

Can a self-employed investor use a DSCR loan?

Accepted Answer

Yes. Many self-employed investors prefer DSCR because the lender focuses on the property income instead of their personal tax returns.

Question 6

Which loan closes faster?

Accepted Answer

DSCR usually closes faster because the lender is not sorting through months of personal deposits and business cash flow.

In Alameda, Bank Statement and DSCR Loans Solve Different Problems