Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. For a primary residence, look at Bank Statement or other non-QM options.

Question 2

What credit score do I need for a Bank Statement loan?

Accepted Answer

Most lenders want at least a 620, but 680+ gets you better pricing. Rates vary by borrower profile and market conditions.

Question 3

What DSCR ratio do lenders require?

Accepted Answer

A ratio of 1.0 means rent covers the payment exactly. Many lenders prefer 1.1 or higher to reduce risk.

Question 4

Can an LLC close on a DSCR loan?

Accepted Answer

Yes. DSCR loans commonly close in an LLC. That's one reason portfolio investors prefer them over conventional financing.

Question 5

Which loan has lower rates, Bank Statement or DSCR?

Accepted Answer

Both price above conventional loans. Rates vary by borrower profile and market conditions — we'll run both scenarios for you.

Question 6

Can I use rental income from the subject property on a Bank Statement loan?

Accepted Answer

Typically no. Bank Statement loans rely on your personal or business deposits, not projected rent from the property.

Bank Statement vs DSCR Loans in Hayward, CA