Question 1

Can I use a DSCR loan for a primary residence?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, Bank Statement is the non-QM option.

Question 2

What credit score do I need for either loan?

Accepted Answer

Requirements vary by lender. Generally, non-QM loans start around 620–640. Stronger scores get better rates.

Question 3

Do Bank Statement loans work for LLCs?

Accepted Answer

Yes. Many lenders accept business bank statements. You'll likely need a CPA letter confirming your ownership percentage.

Question 4

What is a DSCR ratio and what do lenders want?

Accepted Answer

DSCR measures rent divided by the mortgage payment. Most lenders want 1.0 or higher — meaning rent covers the full payment.

Question 5

Are these loans available in rural Mendocino County?

Accepted Answer

Yes. Non-QM lenders don't restrict by rural designation. Property type and loan amount matter more than location.

Question 6

Which loan has a lower down payment requirement?

Accepted Answer

Both typically require 20–25% down. DSCR loans often sit at the higher end since they're investment properties.

Bank Statement vs DSCR Loans in Willits, CA