Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, Bank Statement loans are the right Non-QM option.

Question 2

Can I use both loans to build a portfolio?

Accepted Answer

Yes. Many investors use Bank Statement loans for personal purchases and DSCR loans for rental acquisitions.

Question 3

Do DSCR loans check my credit score?

Accepted Answer

Yes. Personal income isn't reviewed, but your credit score still matters. Most DSCR lenders want a 620 or higher.

Question 4

How many bank statements do I need?

Accepted Answer

Most lenders want 12 months minimum. Some require 24. Business and personal accounts are both typically accepted.

Question 5

Which loan has a lower down payment requirement?

Accepted Answer

Both are Non-QM and usually require at least 20% down. Some DSCR programs allow 15% with stronger cash flow.

Question 6

Can I hold a DSCR loan in an LLC in California?

Accepted Answer

Many DSCR lenders allow LLC ownership. Bank Statement loans are almost always in your personal name.

Bank Statement vs DSCR Loans in Eureka, CA