Question 1

Can I use a DSCR loan for a short-term vacation rental in Napa?

Accepted Answer

Some lenders accept short-term rental income for DSCR. Policies vary — not every wholesale lender allows it, so you need to shop programs carefully.

Question 2

Do Bank Statement loans require a minimum credit score?

Accepted Answer

Most lenders want at least 660-680 for Bank Statement loans. Higher scores get better pricing. Non-QM lenders vary significantly on this threshold.

Question 3

Can I use both loans at the same time?

Accepted Answer

Yes. A self-employed investor could use a Bank Statement loan for their primary and a DSCR loan for a rental. They qualify independently.

Question 4

What down payment do these loans require?

Accepted Answer

Expect 10-20% down for Bank Statement loans and 20-25% for DSCR. Non-QM lenders carry more risk, so they require more skin in the game.

Question 5

Are non-QM rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM loans carry higher risk for lenders, so pricing reflects that. Rates vary by borrower profile and market conditions.

Question 6

Which loan closes faster in St. Helena?

Accepted Answer

DSCR loans often move faster — there's less personal documentation to collect. Bank Statement loans require lenders to analyze months of deposit history.

Bank Statement vs DSCR Loans in St. Helena, CA