Question 1

Can I use a DSCR loan to buy my primary home in San Anselmo?

Accepted Answer

No. DSCR loans are for investment properties only. If you're buying a primary residence, you'll need a different loan type.

Question 2

How many months of bank statements do lenders require?

Accepted Answer

Most lenders want 12 to 24 months. Business account statements typically require an expense factor applied to deposits.

Question 3

What DSCR ratio do lenders look for?

Accepted Answer

Most want a DSCR of 1.1 or higher. Below 1.0 means rent doesn't cover the payment — most lenders won't touch that.

Question 4

Do both loans require good credit?

Accepted Answer

Yes. Most non-QM lenders want 680+ for competitive pricing. Lower scores may qualify but at higher rates.

Question 5

Can a self-employed investor use either loan?

Accepted Answer

Yes. A self-employed investor buying a rental can use DSCR — personal income doesn't matter. Bank Statement works too, but DSCR is usually simpler for rentals.

Question 6

Which loan closes faster in a competitive market?

Accepted Answer

DSCR tends to move quicker since underwriting focuses on the property, not personal financials. Fewer documents means fewer delays.

Bank Statement vs DSCR Loans in San Anselmo