Question 1

Can I use Bank Statement loans for rental properties in Norwalk?

Accepted Answer

No. Bank Statement loans require owner occupancy. For rentals, you need a DSCR loan or another investment property product.

Question 2

Do DSCR loans require tax returns?

Accepted Answer

No. DSCR loans qualify based on the property's rent, not your personal income. No tax returns, W-2s, or pay stubs needed.

Question 3

Which loan has lower rates in Los Angeles County?

Accepted Answer

Bank Statement loans typically offer lower rates because they're owner-occupied. DSCR loans price as investment property with higher risk.

Question 4

What credit score do I need for each program?

Accepted Answer

Bank Statement usually requires 620-680. DSCR programs often start at 660-680, depending on down payment and DSCR ratio.

Question 5

Can I combine Bank Statement and DSCR loans?

Accepted Answer

Not on the same property. But you can use Bank Statement for your home and DSCR for separate rental properties simultaneously.

Question 6

How do lenders calculate DSCR for a Norwalk rental?

Accepted Answer

They divide the monthly rent by total monthly debt (mortgage, taxes, insurance, HOA). A 1.0 ratio means rent exactly covers expenses.

Bank Statement Loans vs DSCR Loans in Norwalk: Which Non-QM Loan Fits Your Strategy?