Question 1

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

Accepted Answer

Yes, but a DSCR loan is usually cleaner for rentals. Bank statement loans work — DSCR just removes your personal income from the equation entirely.

Question 2

What credit score do I need for each loan?

Accepted Answer

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

Question 3

How much do I need to put down?

Accepted Answer

Bank statement loans often allow 10% down on a primary home. DSCR loans typically require 20–25% down on investment properties.

Question 4

Do DSCR lenders care about my income at all?

Accepted Answer

Most don't verify personal income at all. A few want to see you have some liquid reserves. The property's rent does the heavy lifting.

Question 5

Can I close a DSCR loan in an LLC?

Accepted Answer

Yes. Many DSCR lenders allow LLC vesting, which matters for investors building a portfolio. Bank statement loans typically require individual borrowers.

Question 6

Which loan closes faster in Chico?

Accepted Answer

DSCR loans often move quicker — fewer personal documents to collect. Bank statement loans need 12–24 months of statements reviewed and averaged.

Bank Statement vs DSCR Loans in Chico, CA