Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

No. DSCR loans are for investment properties only. Use a Bank Statement loan if you plan to live in the home.

Question 2

What credit score do I need for these loans?

Accepted Answer

Both are Non-QM, but lenders still check credit. Stronger scores get better terms on both programs.

Question 3

Can I own the property in an LLC with a DSCR loan?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Bank Statement loans typically require individual borrower ownership.

Question 4

Which loan is easier to qualify for?

Accepted Answer

DSCR can be simpler if the rent covers the payment. Bank Statement qualification depends on your deposit history.

Question 5

Do both loans require an appraisal?

Accepted Answer

Yes. Both require a property appraisal. DSCR lenders also look at a rent schedule to validate income.

Bank Statement vs DSCR Loans in San Jacinto, CA