Question 1

Can I use both loans at the same time?

Accepted Answer

Yes. Some borrowers use a bank statement loan for their home and a DSCR loan for a rental. They serve different purposes and don't conflict.

Question 2

Which loan has stricter credit requirements?

Accepted Answer

Both are non-QM, so requirements vary by lender. Generally, expect a 660–680 minimum for either. Rates vary by borrower profile and market conditions.

Question 3

Do DSCR loans work for short-term rentals in Monterey?

Accepted Answer

Some lenders accept short-term rental income for DSCR. Others use long-term market rent only. Confirm this before you're under contract.

Question 4

How much do I need to put down?

Accepted Answer

Bank statement loans typically require 10–20% down. DSCR loans usually start at 20–25% for investment properties.

Question 5

Which loan closes faster?

Accepted Answer

DSCR loans often close faster. There's no income documentation to gather or verify — approval hinges on the property's rent-to-payment ratio.

Question 6

Can a self-employed investor use either loan?

Accepted Answer

Yes. A self-employed investor buying a rental could qualify for DSCR without touching personal financials. Bank statement is the fallback if the deal doesn't pencil on DSCR.

Bank Statement vs DSCR Loans in Monterey, CA