Question 1

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

Accepted Answer

No. Bank statement loans require owner occupancy or second home use. Investment properties need DSCR or other investor loan programs.

Question 2

What if my Lafayette rental doesn't hit a 1.0 DSCR?

Accepted Answer

Some lenders allow ratios as low as 0.75, but you'll pay higher rates and need more down. Stronger ratios get better pricing.

Question 3

Do both loan types work with LLCs?

Accepted Answer

DSCR loans close in personal or LLC name. Bank statement loans typically require personal ownership since they verify individual income through deposits.

Question 4

Which loan has better rates in Lafayette?

Accepted Answer

Rates vary by borrower profile and market conditions. Both price similarly, though DSCR can be slightly lower if the property's ratio is strong.

Question 5

Can I refinance from one to the other?

Accepted Answer

You can refinance a bank statement primary home into conventional once your tax returns support income. DSCR properties stay investor loans unless you occupy them.

Bank Statement Loans vs DSCR Loans in Lafayette: Which Non-QM Option Fits Your Strategy?