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 if you plan to live in the home.

Question 2

Do bank statement loans require good credit?

Accepted Answer

Most lenders want a 640 or higher credit score. Some go lower with stronger compensating factors like bigger down payments.

Question 3

What DSCR ratio do lenders want to see?

Accepted Answer

Most lenders require a DSCR of 1.0 or above. Some want 1.25. A ratio below 1.0 means rent doesn't cover the payment.

Question 4

Which loan has a lower down payment requirement?

Accepted Answer

Both typically require 20% or more down. Bank statement loans may allow less in some cases. Rates vary by borrower profile and market conditions.

Question 5

Can a self-employed investor use a DSCR loan?

Accepted Answer

Yes. DSCR ignores your employment status entirely. If the rental income qualifies the property, your self-employment is not an issue.

Question 6

Are these loans available for properties in Clearlake?

Accepted Answer

Yes. We work with 200+ wholesale lenders and have non-QM options for Lake County properties, including both loan types.

Bank Statement vs DSCR Loans in Clearlake, CA