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, a Bank Statement Loan is the right Non-QM option.

Question 2

Do Bank Statement Loans require good credit?

Accepted Answer

Most lenders want a 620 or higher. Better scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

What DSCR ratio do lenders require?

Accepted Answer

Most lenders require a DSCR of 1.0 to 1.25. A ratio below 1.0 means the rent doesn't cover the mortgage.

Question 4

Which loan closes faster?

Accepted Answer

DSCR Loans often close faster. There's no personal income to verify — underwriting focuses on the property's rent and appraisal.

Question 5

Can I use both loans as a self-employed investor?

Accepted Answer

Yes. A Bank Statement Loan works for your primary home. DSCR covers your rentals. Many clients in RSM use both.

Question 6

Are both loans available in Orange County?

Accepted Answer

Yes. As a California broker, SRK CAPITAL has access to Non-QM lenders offering both programs in Orange County.

Bank Statement vs DSCR Loans in Rancho Santa Margarita