Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, Bank Statement is the right Non-QM option.

Question 2

Do Bank Statement loans require good credit?

Accepted Answer

Most lenders want a 660+ score, though some go lower. Stronger credit gets you better pricing.

Question 3

What DSCR ratio do lenders want in Butte County?

Accepted Answer

Most lenders target 1.0 or higher. Some programs allow below 1.0 with a larger down payment.

Question 4

Can I use business bank statements instead of personal?

Accepted Answer

Yes. Lenders apply an expense factor to business deposits to estimate net income. Personal statements are simpler.

Question 5

Which loan closes faster?

Accepted Answer

DSCR often moves faster since there's no personal income analysis. Bank Statement underwriting takes more review time.

Question 6

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes, most DSCR programs allow LLC vesting. Bank Statement loans typically require personal borrowing.

Bank Statement vs DSCR Loans in Gridley, CA