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 home, look at Bank Statement or other Non-QM options.

Question 2

Do Bank Statement Loans require good credit?

Accepted Answer

Most lenders want a 660 or higher. Better credit gets you better pricing on these Non-QM products.

Question 3

What DSCR ratio do lenders want in Monterey County?

Accepted Answer

Most lenders require a 1.0 minimum, with better pricing at 1.25 or above. The rent-to-payment ratio is everything.

Question 4

Can I use a Bank Statement Loan for an investment property?

Accepted Answer

Yes. Some lenders allow it, but DSCR is usually simpler and cheaper for investment purchases.

Question 5

Which loan closes faster in Sand City?

Accepted Answer

DSCR loans often close faster. There's less personal income documentation to verify and underwrite.

Question 6

Do both loan types require a down payment?

Accepted Answer

Yes. Expect 10-20% down for Bank Statement and 20-25% for most DSCR loans. Rates vary by borrower profile and market conditions.

Bank Statement vs DSCR Loans in Sand City, CA