Question 1

Can I use bank statement loans for rental properties in Clovis?

Accepted Answer

Yes, but most borrowers choose DSCR instead. Bank statement loans require proving personal income even for investment properties, which defeats the purpose.

Question 2

What credit score do I need for DSCR loans?

Accepted Answer

Most lenders want 620 minimum, but 680+ gets better rates. Your score matters less than the property's rent-to-payment ratio.

Question 3

Do DSCR loans require an appraisal in Clovis?

Accepted Answer

Yes. Lenders also pull a rental market analysis to estimate income. Both documents determine your approval and loan amount.

Question 4

How do lenders calculate income on bank statement loans?

Accepted Answer

They average 12 or 24 months of deposits, then subtract an expense ratio. Business accounts use 25% expenses; personal accounts use 50%.

Question 5

Can I refinance a primary residence in Clovis with a DSCR loan?

Accepted Answer

No. DSCR loans only fund investment properties. Use a bank statement loan or cash-out refinance for owner-occupied homes.

Bank Statement vs DSCR Loans in Clovis: Which Non-QM Option Works for Your Income?