Question 1

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

Accepted Answer

Yes, but DSCR is usually a better fit for rentals. Bank statement loans can apply to investment properties, but DSCR removes personal income from the equation entirely.

Question 2

What credit score do I need for either loan?

Accepted Answer

Most lenders want a 620 or higher for both programs. Stronger scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

How does DSCR work if the property is vacant?

Accepted Answer

Lenders use a market rent appraisal to estimate income. The property still needs to show a qualifying ratio based on that figure.

Question 4

How many months of bank statements do I need?

Accepted Answer

Most lenders require 12 months minimum. Some want 24 months, especially for larger loan amounts or lower credit scores.

Question 5

Which loan is faster to close?

Accepted Answer

DSCR can move faster since there's no personal income to verify. Bank statement loans require time to average deposits and review account history.

Question 6

Can I have both loans at the same time?

Accepted Answer

Yes. A bank statement loan on your primary home and a DSCR loan on a rental property can coexist. They qualify differently, so one doesn't block the other.

Bank Statement vs DSCR Loans in Rio Dell, CA