Question 1

Can I use both loan types at the same time?

Accepted Answer

No, you pick one per property. If you're buying multiple rentals, you could use DSCR on some and bank statement on others depending on which approves easier.

Question 2

Which has better rates?

Accepted Answer

DSCR loans typically price 0.25-0.50% lower because underwriting is simpler. Rates vary by borrower profile and market conditions.

Question 3

Do I need tax returns for either loan?

Accepted Answer

No. That's the point of both programs. Bank statement uses deposits, DSCR uses property rent. Neither requires personal or business tax returns.

Question 4

What credit score do I need?

Accepted Answer

Bank statement loans start at 620. DSCR loans typically need 660 minimum, though some lenders go to 640 with higher rates.

Question 5

Can I use projected rent for a DSCR loan?

Accepted Answer

Yes, if the property isn't rented yet. Lenders order a rent appraisal showing market rent, then calculate DSCR from that number.

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