Question 1

Can I use bank statement loans for Long Beach rental properties?

Accepted Answer

Yes, bank statement loans work for investment properties. You'll need 15-20% down and your personal income must support the debt load.

Question 2

Do DSCR loans require an existing lease in place?

Accepted Answer

Not always. If the property is vacant, appraisers provide a market rent estimate that underwriters use to calculate DSCR.

Question 3

Which loan type has lower rates?

Accepted Answer

Bank statement loans often price slightly better than DSCR. Rates vary by borrower profile and market conditions.

Question 4

Can I avoid showing any income documentation with DSCR?

Accepted Answer

Correct. DSCR loans require zero personal income verification. The property's rental income is the only qualification factor.

Question 5

What DSCR ratio do I need to qualify?

Accepted Answer

Most lenders require 1.0 or higher, meaning rent covers the mortgage payment. Some allow 0.75 DSCR with larger down payments.

Question 6

Do both loan types work for multi-family properties in Long Beach?

Accepted Answer

Yes. Bank statement covers 1-4 units with owner or non-owner occupancy. DSCR covers 1-4 unit investment properties only.

Bank Statement vs DSCR Loans in Long Beach: Which Non-QM Option Fits Your Investment Strategy?