Question 1

Can I use a bank statement loan to buy a rental property?

Accepted Answer

Yes, but DSCR is usually cleaner for rentals. Bank statement loans work better when you're buying a home you'll occupy.

Question 2

Do DSCR loans require me to have rental history?

Accepted Answer

No. Lenders use a market rent appraisal if the property has no rental history. The appraiser estimates what it would lease for.

Question 3

What credit score do I need for these loans?

Accepted Answer

Most non-QM lenders want at least 620 to 660. Stronger credit gets better rates on both programs. Rates vary by borrower profile and market conditions.

Question 4

Are bank statement loans available for LLCs?

Accepted Answer

Some lenders allow business bank statements from an LLC. You'll typically need to show ownership percentage and an expense factor may apply.

Question 5

Which loan has the lower interest rate?

Accepted Answer

Neither is cheap compared to conventional. Rates vary by borrower profile and market conditions. DSCR rates often run slightly higher than bank statement rates.

Question 6

Can I use a DSCR loan on a short-term rental in Amador County?

Accepted Answer

Some lenders allow Airbnb-style income on DSCR loans. Not all do — lender guidelines vary, and rural markets like Jackson get extra scrutiny.

Bank Statement vs DSCR Loans in Jackson, CA