Question 1

Can I use a DSCR loan on a primary residence in Livermore?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary residence, you'd need a bank statement or another non-QM option.

Question 2

What credit score do I need for each loan?

Accepted Answer

Most lenders want at least 660–680 for bank statement loans and 620–660 for DSCR. Stronger scores get better rates on both.

Question 3

How much down payment is required?

Accepted Answer

Bank statement loans typically require 10–20% down. DSCR loans usually start at 20–25% for investment properties.

Question 4

Can a self-employed investor use both loan types?

Accepted Answer

Yes. A self-employed investor could use a bank statement loan on their own home and a DSCR loan on a rental. They serve different purposes.

Question 5

Which loan closes faster?

Accepted Answer

DSCR loans often close faster. There's no personal income analysis — just a lease, rent schedule, and property appraisal.

Question 6

Do both loans require an appraisal?

Accepted Answer

Yes, both require a full appraisal. DSCR lenders also review the rent schedule to confirm the property's income supports the loan.

Bank Statement vs DSCR Loans in Livermore, CA