Question 1

Can I use a DSCR loan for a short-term rental in Sutter Creek?

Accepted Answer

Some lenders accept short-term rental projections. Not all do — we know which wholesale lenders allow it.

Question 2

Do bank statement loans require two years self-employed?

Accepted Answer

Most lenders want 24 months of self-employment history. Some accept 12 months with strong deposits and a CPA letter.

Question 3

Which loan has a lower credit score minimum?

Accepted Answer

Both typically require 620-660 minimum credit. DSCR loans sometimes go lower if the property cash flow is strong.

Question 4

Can I use an LLC to take out a DSCR loan?

Accepted Answer

Yes. DSCR loans are commonly structured through LLCs. That's one reason investors prefer them for rentals.

Question 5

Are rates higher on these loans than conventional?

Accepted Answer

Yes. Both are non-QM products and carry a rate premium. Rates vary by borrower profile and market conditions.

Question 6

Can I buy a primary home with a DSCR loan?

Accepted Answer

No. DSCR is for investment properties only. For a primary residence, bank statement is the non-QM option.

Bank Statement vs DSCR Loans in Sutter Creek