Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. Use a bank statement loan for primary or second homes.

Question 2

Do bank statement loans work for LLCs?

Accepted Answer

Sometimes, but it depends on the lender. DSCR loans handle LLC borrowers more cleanly across most wholesale lenders.

Question 3

Which loan has stricter credit requirements?

Accepted Answer

Both non-QM loans typically require 620–680 minimum credit. DSCR lenders often push closer to 680 for better pricing.

Question 4

Can I use both loans at the same time?

Accepted Answer

Yes. A self-employed investor could use a bank statement loan on a primary home and a DSCR loan on a rental simultaneously.

Question 5

What if my rental property breaks even — will DSCR still work?

Accepted Answer

A 1.0 DSCR means income equals debt payments. Some lenders accept that, but expect tighter terms and higher rates.

Question 6

Are rates higher on these loans than conventional?

Accepted Answer

Yes. Both are non-QM products. Rates run higher than conventional. Rates vary by borrower profile and market conditions.

Bank Statement vs DSCR Loans in Westmorland, CA