Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

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

Question 2

What credit score do I need for either loan?

Accepted Answer

Most lenders want at least a 620–640 for both programs. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

Do Bank Statement Loans require a big down payment?

Accepted Answer

Typically 10–20% down depending on the lender and property type. Investment properties through this program usually require more.

Question 4

How is DSCR calculated?

Accepted Answer

Divide the monthly rental income by the monthly debt payment. A ratio of 1.0 means the property breaks even. Above 1.0 is stronger.

Question 5

Can a Greenfield investor use both loan types?

Accepted Answer

Yes. Many investors use a Bank Statement Loan for their own home and DSCR loans for rental properties. They serve different purposes.

Question 6

Which loan closes faster?

Accepted Answer

DSCR loans often close faster since there's no personal income analysis. Bank Statement Loans require document review of 12–24 months of statements.

Bank Statement vs DSCR Loans in Greenfield, CA