Question 1

Can I use bank statements for an investment property?

Accepted Answer

Yes, but DSCR makes more sense. Bank statement loans work for any property type, but proving personal income is unnecessary when rent covers the mortgage.

Question 2

What if my rental property has a DSCR below 1.0?

Accepted Answer

You'll need a larger down payment or use bank statements instead. Some lenders allow 0.75 DSCR with 25-30% down.

Question 3

Do both loans require the same down payment?

Accepted Answer

No. Bank statement loans go to 90% LTV on primary homes. DSCR loans cap at 80% LTV for investors.

Question 4

Which loan has better rates in Brentwood?

Accepted Answer

Rates run nearly identical between the two. Your credit score and loan size affect pricing more than the program itself.

Question 5

Can I avoid tax returns with bank statement loans?

Accepted Answer

Yes, that's the entire point. Bank statements replace tax returns for income verification.

Question 6

Do DSCR loans require an appraisal?

Accepted Answer

Yes, and the appraiser must include rental income analysis. The appraisal determines both value and expected rent.

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