Question 1

Can I use both loan types at the same time?

Accepted Answer

Yes. You could buy a Commerce duplex with DSCR and your primary home with bank statement. They're separate products with different qualification logic.

Question 2

Which loan has lower down payment requirements?

Accepted Answer

Bank statement loans can go as low as 10% down for primary homes. DSCR loans typically require 20-25% down for investment properties.

Question 3

Do I need an LLC for a DSCR loan?

Accepted Answer

No. You can close in your personal name or an LLC. The entity structure doesn't affect DSCR approval.

Question 4

Which program closes faster in Commerce?

Accepted Answer

DSCR usually closes quicker. Less income documentation means less back-and-forth with underwriting. Expect 21-30 days vs 30-40 for bank statement.

Question 5

Can I refinance from one to the other?

Accepted Answer

Absolutely. Many investors refi from bank statement to DSCR once they have rental history, or vice versa if they convert a rental to owner-occupied.

Bank Statement vs DSCR Loans in Commerce: Which Non-QM Option Fits Your Deal?