Question 1

Can I use a DSCR loan on a short-term rental in Mendocino County?

Accepted Answer

Some lenders allow it using projected short-term rental income. Not all do — lender guidelines vary significantly on this.

Question 2

Do bank statement loans have higher rates than conventional?

Accepted Answer

Yes, Non-QM loans typically carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.

Question 3

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want a 680 or higher. Some go down to 640 with a stronger property cash flow.

Question 4

Can I use both loan types if I'm self-employed and buying a rental?

Accepted Answer

Yes. Self-employed investors can qualify for either. We compare both options to find the better fit.

Question 5

Which loan closes faster in Ukiah?

Accepted Answer

DSCR loans often close faster since there's no personal income analysis. Bank statement loans require more document review.

Question 6

Do these loans have prepayment penalties?

Accepted Answer

Many Non-QM loans do include prepayment penalties. Ask your broker to review the specific lender's terms before signing.

Bank Statement Loans vs DSCR Loans in Ukiah, CA