Question 1

Can I use a Bank Statement loan to buy a rental property?

Accepted Answer

Yes, but DSCR usually makes more sense for rentals. It doesn't require any personal income documentation at all.

Question 2

What credit score do I need for either loan?

Accepted Answer

Most lenders want at least 620 to 640 for both products. Higher scores get better pricing.

Question 3

Do DSCR loans work for short-term rentals like Airbnb?

Accepted Answer

Some lenders allow it using projected rental income. Not all do — lender guidelines vary significantly on this.

Question 4

How much down payment is required?

Accepted Answer

Expect 20 to 25 percent down for both loan types. Non-QM lenders rarely go below 20 percent.

Question 5

Can I use an LLC to close a DSCR loan?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Bank Statement loans typically require individual borrowers.

Question 6

Which loan closes faster in Fortuna?

Accepted Answer

DSCR can close faster since there's no income analysis. Bank Statement review adds time for deposit averaging.

Bank Statement vs DSCR Loans in Fortuna, CA