Question 1

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

Accepted Answer

No. DSCR is for investment properties only. For a primary home, Bank Statement is your non-QM option.

Question 2

Do Bank Statement Loans require self-employment?

Accepted Answer

Yes. You typically need at least 2 years of self-employment. W-2 employees don't qualify for this program.

Question 3

What credit score do I need for a DSCR Loan?

Accepted Answer

Most lenders want 660 or higher, though some go down to 620. The property's cash flow matters just as much.

Question 4

Which loan closes faster?

Accepted Answer

DSCR typically closes faster — there's less income documentation to gather. Bank Statement loans require 12–24 months of statements.

Question 5

Can I use both loans at the same time?

Accepted Answer

Yes. Some borrowers use a Bank Statement Loan to buy their home and a DSCR Loan for a rental simultaneously.

Question 6

How does a lender calculate DSCR?

Accepted Answer

Divide the property's monthly rent by the total mortgage payment. A result of 1.0 means rent exactly covers the payment.

Bank Statement vs DSCR Loans in Temecula