Question 1

Can I use bank statements for a Merced rental property?

Accepted Answer

Yes, bank statement loans work for investment properties. However, DSCR is usually faster and simpler when you're buying a rental.

Question 2

Which loan has lower rates in Merced?

Accepted Answer

Rates depend on credit score, down payment, and property type. DSCR often prices better for strong rental properties with high coverage ratios.

Question 3

Do both loans require tax returns?

Accepted Answer

DSCR never requires tax returns. Bank statement loans sometimes ask for one year to verify self-employment, but don't use them for income calculation.

Question 4

What down payment do I need for each loan?

Accepted Answer

Bank statement typically starts at 10% down for primary homes, 15-20% for rentals. DSCR usually requires 20-25% down on investment properties.

Question 5

Can I refinance with these programs?

Accepted Answer

Yes, both work for refinances. DSCR is common for cash-out refinances on Merced rentals when you need capital without income verification.

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