Question 1

Can I use a DSCR loan for a vacation rental in Point Arena?

Accepted Answer

Yes — short-term rental income can count. Some lenders use projected Airbnb income. Ask your broker which lenders accept that.

Question 2

Do Bank Statement loans require two years of self-employment?

Accepted Answer

Most lenders want 24 months of self-employment history. Some accept 12 months with strong compensating factors.

Question 3

Which loan has the lower interest rate?

Accepted Answer

Neither is cheap — both are non-QM. Rates vary by credit score, down payment, and lender. Rates vary by borrower profile and market conditions.

Question 4

What credit score do I need for either loan?

Accepted Answer

Most lenders want 680 or higher for both programs. Stronger credit gets better pricing on both.

Question 5

Can I use a Bank Statement loan to buy a rental property?

Accepted Answer

Yes. Bank Statement loans work for investment properties too. DSCR just tends to be simpler when rental income is the main qualifier.

Question 6

How much down payment do these loans require?

Accepted Answer

Expect 20–25% down for both. DSCR lenders often require 25% on investment properties specifically.

Bank Statement vs DSCR Loans in Point Arena, CA