Question 1

Can I use a bank statement loan for a rental property in Clayton?

Accepted Answer

No. Bank statement loans require owner occupancy. For rental properties, you need a DSCR loan or another investment property program.

Question 2

Which loan has better rates, bank statement or DSCR?

Accepted Answer

Rates vary by borrower profile and market conditions. Generally comparable, both running 1-2% above conventional rates. Your credit score and down payment affect pricing more than loan type.

Question 3

Do both loans require tax returns?

Accepted Answer

DSCR loans skip tax returns entirely. Bank statement loans may require business returns to verify self-employment, but don't use them for income calculation.

Question 4

Can I qualify for both loan types simultaneously?

Accepted Answer

Yes, for different properties. Use bank statement for your primary residence and DSCR for rentals. Each property gets underwritten separately based on its use.

Question 5

What credit score do I need for each loan type?

Accepted Answer

Both typically require 620 minimum. Higher scores get better rates. DSCR lenders may accept slightly lower scores with larger down payments and strong rental ratios.

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