Question 1

Can I use a DSCR loan for a primary residence?

Accepted Answer

No. DSCR is investment property only. For a primary home, you'd need a Bank Statement loan or another non-QM option.

Question 2

Which loan has the lower rate?

Accepted Answer

It depends on the deal. DSCR can price well on strong cash-flow properties. Rates vary by borrower profile and market conditions.

Question 3

Do both loans require good credit?

Accepted Answer

Yes. Most non-QM lenders want at least 620 for either product. Better credit means better pricing on both.

Question 4

Can I use both loan types at once?

Accepted Answer

Yes. Some investors use a Bank Statement loan for their primary home and DSCR loans for rentals simultaneously.

Question 5

What counts as qualifying rental income for DSCR?

Accepted Answer

Lenders use a lease agreement or market rent appraisal. Some lenders accept short-term rental income with documented history.

Question 6

How long does approval take for each?

Accepted Answer

Both can close in 3 to 4 weeks with clean files. DSCR is sometimes faster since there's no income analysis involved.

Bank Statement vs DSCR Loans in Lincoln, CA