Question 1

Can I use a bank statement loan for a Napa rental property?

Accepted Answer

Yes. Bank statement loans work for investment properties. You'll need 20% down and qualify based on your bank deposits, not the rental income.

Question 2

Do DSCR loans require tax returns?

Accepted Answer

No. DSCR loans skip tax returns entirely. Lenders approve based on the property's rental income and debt coverage ratio.

Question 3

Which loan has lower rates in Napa?

Accepted Answer

Rates vary by borrower profile and market conditions. DSCR loans often price slightly lower when the property's DSCR exceeds 1.25.

Question 4

Can I live in a property financed with a DSCR loan?

Accepted Answer

No. DSCR loans require the property to be rented. Living there violates the loan terms and triggers default.

Question 5

What's the minimum down payment for each loan type in Napa?

Accepted Answer

Bank statement loans need 10% down for primary homes, 20% for rentals. DSCR loans require 20-25% down for all investment properties.

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