Question 1

Can I use a DSCR loan to buy a home in Aliso Viejo to live in?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary residence, you'd need a Bank Statement loan or a conventional program.

Question 2

What credit score do I need for these loans?

Accepted Answer

Most Non-QM lenders want at least a 620 for both programs. Higher scores get better pricing. Rates vary by borrower profile and market conditions.

Question 3

Do Bank Statement Loans require a larger down payment?

Accepted Answer

Typically yes — 10% to 20% down is common. Exact requirements depend on the lender and your overall borrower profile.

Question 4

What DSCR ratio do lenders want for Orange County rentals?

Accepted Answer

Most lenders require 1.0 or higher. Some want 1.1 to 1.25. A ratio below 1.0 means rent doesn't fully cover the payment.

Question 5

Can a self-employed investor use both loan types?

Accepted Answer

Yes. A self-employed borrower can use a Bank Statement loan on their primary home and a DSCR loan on a rental. They serve different purposes.

Question 6

Which loan is faster to close?

Accepted Answer

DSCR loans often close faster. There's less income documentation to underwrite. Bank Statement loans require lenders to analyze months of deposit history.

Bank Statement vs DSCR Loans in Aliso Viejo