Question 1

Can I use a DSCR loan on a primary residence?

Accepted Answer

No. DSCR is for investment properties only. For a primary home, you'd need a bank statement or another non-QM option.

Question 2

What credit score do these loans require?

Accepted Answer

Most lenders want 660–680 minimum for both. Stronger scores get better pricing. Rates vary by borrower profile and market conditions.

Question 3

Do bank statement loans work for LLCs?

Accepted Answer

Yes. Many lenders accept business bank statements. Some apply an expense factor to business deposits to calculate net income.

Question 4

What DSCR ratio do lenders want in practice?

Accepted Answer

Most want 1.10 to 1.25. A ratio below 1.0 means the rent doesn't cover the mortgage — that's a hard pass for most lenders.

Question 5

Which loan closes faster?

Accepted Answer

DSCR loans often move faster. Less personal documentation means less back-and-forth with underwriting.

Question 6

Can I use both loans if I buy two properties?

Accepted Answer

Yes. Bank statement for the home you live in, DSCR for the rental. Both can be in your portfolio at the same time.

Bank Statement vs DSCR Loans in Blue Lake, CA