Question 1

Can I use a DSCR loan to buy a primary home in Hemet?

Accepted Answer

No. DSCR is for investment properties only. For a primary home, you'd need a bank statement loan or another non-QM product.

Question 2

Do bank statement loans require a business license?

Accepted Answer

Most lenders want proof you're self-employed. A business license or CPA letter usually satisfies that requirement.

Question 3

What DSCR ratio do lenders want in Riverside County?

Accepted Answer

Most lenders want 1.0 or higher. A ratio under 1.0 means rent doesn't cover the payment — that's a hard no for most.

Question 4

Which loan has stricter credit requirements?

Accepted Answer

Both typically require 620 or higher. Some DSCR lenders go down to 620 for strong cash-flowing properties.

Question 5

Can I use both loan types at the same time?

Accepted Answer

Yes. A bank statement loan can cover your primary residence while a DSCR loan funds your Hemet rental — no conflict.

Question 6

Are down payments higher on these loans than conventional?

Accepted Answer

Yes. Expect 20–25% down on DSCR and 10–20% on bank statement loans. Less skin in the game isn't an option here.

Bank Statement vs DSCR Loans in Hemet, CA