Question 1

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

Accepted Answer

Yes. Bank statement loans work on investment properties. But if the rental income alone qualifies, a DSCR loan usually offers better terms.

Question 2

Do DSCR loans check my credit score?

Accepted Answer

Yes. Most DSCR lenders require a 620–680 minimum credit score. A higher score gets you better pricing.

Question 3

What down payment do these loans require?

Accepted Answer

Bank statement loans typically need 10–20% down. DSCR loans usually require 20–25% on investment properties.

Question 4

Which loan has higher rates?

Accepted Answer

Both carry higher rates than conventional loans. Rates vary by borrower profile and market conditions — get quotes on both before deciding.

Question 5

Can a self-employed investor use either loan?

Accepted Answer

Yes. Self-employed investors sometimes qualify for both. We run the numbers on each to find the stronger scenario.

Bank Statement vs DSCR Loans in Arcata, CA