Question 1

Can I use a bank statement loan for an investment property in Orinda?

Accepted Answer

No, bank statement loans require owner occupancy. If you're buying a rental property, you need a DSCR loan or another investment property program.

Question 2

Do DSCR loans require tax returns?

Accepted Answer

No, DSCR loans qualify on rental income alone. Your personal tax returns, W-2s, and employment history don't factor into approval.

Question 3

Which loan has stricter credit requirements?

Accepted Answer

Both typically require 680+ credit. DSCR lenders may accept slightly lower scores if the property's rental income is strong and you put more money down.

Question 4

Can I get a DSCR loan with a ratio below 1.0?

Accepted Answer

Some lenders approve ratios as low as 0.75, but you'll pay higher rates. A ratio below 1.0 means rent doesn't fully cover the mortgage.

Question 5

How long do I need to be self-employed for a bank statement loan?

Accepted Answer

Most lenders want two years of self-employment history. Some accept one year if you worked in the same industry before going solo.

Bank Statement Loans vs DSCR Loans in Orinda: Which Non-QM Loan Fits Your Property Goals?