Question 1

Can I use a DSCR loan to buy a primary residence in Berkeley?

Accepted Answer

No. DSCR loans are investment property only. For a primary home, you'd need a bank statement loan or another product.

Question 2

What credit score do I need for these loans?

Accepted Answer

Most lenders want 680 or higher for both. Some go down to 640, but expect tighter terms and higher rates.

Question 3

How much do I need to put down?

Accepted Answer

Plan on 20–25% for both loan types. Some DSCR lenders require 25% on investment properties.

Question 4

Do Berkeley rental properties typically qualify for DSCR?

Accepted Answer

Berkeley rents are strong, which helps DSCR ratios. Whether a specific property qualifies depends on the purchase price and rate.

Question 5

Can a self-employed investor use either loan?

Accepted Answer

Yes. Self-employed investors can use DSCR for rentals or bank statement for any property type. Many use both strategies.

Question 6

Which loan closes faster?

Accepted Answer

DSCR loans often close faster. There's no personal income analysis — just rent and the debt payment ratio.

Bank Statement vs DSCR Loans in Berkeley, CA