Question 1

Can I use a Bank Statement Loan for a rental property?

Accepted Answer

Yes, Bank Statement Loans work for investment properties. But if it's purely a rental, DSCR is simpler since you skip personal income verification entirely.

Question 2

Do DSCR Loans require higher down payments than Bank Statement Loans?

Accepted Answer

Usually yes. DSCR typically needs 20-25% down while Bank Statement can go as low as 10% depending on the lender and your profile.

Question 3

Which loan type has better interest rates?

Accepted Answer

Rates are similar since both are non-QM products. Expect 1-2% above conventional rates, with your credit score and down payment affecting pricing more than loan type.

Question 4

Can I combine both loan types for different properties?

Accepted Answer

Absolutely. Use Bank Statement for your primary residence and DSCR for rentals. Many investors in La Cañada Flintridge structure portfolios this way.

Question 5

How long does each loan type take to close?

Accepted Answer

DSCR often closes faster since there's no income verification. Bank Statement Loans need time to review 12-24 months of statements and calculate income.

Bank Statement Loans vs DSCR Loans: Which Fits Your La Cañada Flintridge Strategy?