Question 1

Can I use a DSCR Loan to buy a primary residence in Norco?

Accepted Answer

No. DSCR Loans are investment-property only. Use a Bank Statement Loan if you're buying a home to live in.

Question 2

How many months of bank statements do lenders require?

Accepted Answer

Most lenders want 12 to 24 months. Business account statements may require an expense ratio adjustment to calculate income.

Question 3

What DSCR ratio do I need to get approved?

Accepted Answer

Most lenders require a DSCR of 1.1 or above. Some will go to 1.0, but expect a higher rate or stricter terms.

Question 4

Can I buy under an LLC with either loan?

Accepted Answer

DSCR Loans commonly allow LLC vesting. Bank Statement Loans typically require you to borrow in your personal name.

Question 5

Which loan has the lower rate in Norco?

Accepted Answer

Bank Statement Loans often price slightly lower than DSCR. Rates vary by borrower profile and market conditions.

Question 6

Do both loans require a down payment?

Accepted Answer

Yes. Both are non-QM products and require a meaningful down payment — typically 20% or more depending on the lender.

Bank Statement vs DSCR Loans in Norco, CA