Question 1

Can I use a DSCR loan to buy my primary residence in Elk Grove?

Accepted Answer

No. DSCR loans are investment property only. For a primary residence, you'd need a bank statement loan or conventional financing.

Question 2

Do both loans require good credit?

Accepted Answer

Yes. Both are non-QM but still credit-sensitive. Most lenders want 660 or higher. Better scores get better rates.

Question 3

Can I use an LLC with either of these loans?

Accepted Answer

DSCR loans commonly close in an LLC. Bank statement loans usually require personal borrowing. Ask your broker before structuring the deal.

Question 4

Which loan has a higher down payment requirement?

Accepted Answer

Both typically require 20–25% down. DSCR lenders may push higher on low-DSCR properties. Rates vary by borrower profile and market conditions.

Question 5

What if my Elk Grove rental doesn't cover the full mortgage payment?

Accepted Answer

A DSCR below 1.0 doesn't automatically disqualify you. Some lenders allow it with a larger down payment or stronger reserves.

Bank Statement vs DSCR Loans in Elk Grove