Question 1

Can I use a Bank Statement loan for investment property in Amador City?

Accepted Answer

Yes, Bank Statement loans work for investment properties, second homes, and primary residences. You'll need 12-24 months of statements showing consistent deposits to qualify.

Question 2

Does a DSCR loan look at my personal tax returns?

Accepted Answer

No, DSCR loans never require personal income verification. Approval depends entirely on whether the property's rental income covers the mortgage payment.

Question 3

Which loan has a lower down payment requirement?

Accepted Answer

Bank Statement loans often allow 10-15% down for investment properties. DSCR loans typically require 20-25% down since there's no personal income verification.

Question 4

Can I get a DSCR loan for a home I'll live in?

Accepted Answer

No, DSCR loans only work for investment properties. If you need owner-occupied financing, a Bank Statement loan is the non-QM option that allows it.

Question 5

What credit score do I need for each loan type?

Accepted Answer

Bank Statement loans typically require 620-640 minimum credit. DSCR loans often start at 640-660 since there's no income documentation backstop.

Question 6

How do lenders calculate income on Bank Statement loans?

Accepted Answer

Lenders average your monthly deposits over 12-24 months, then apply an expense ratio. The remaining amount becomes your qualifying income for debt-to-income calculations.

Bank Statement vs DSCR Loans in Amador City: Which Non-QM Loan Fits Your Investment Strategy?