Question 1

Can I use a DSCR loan to buy a home I plan to live in?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary residence, bank statement loans are the non-QM option.

Question 2

Do bank statement loans require good credit?

Accepted Answer

Most lenders want a 620 or higher. Better credit scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

What DSCR ratio do lenders want to see?

Accepted Answer

Most lenders require at least 1.0. A ratio of 1.25 or above typically qualifies for better pricing and terms.

Question 4

Can I buy in Grand Terrace using an LLC with a DSCR loan?

Accepted Answer

Yes. Many DSCR lenders allow LLC vesting. It's one reason investors prefer DSCR for building a portfolio.

Question 5

Which loan closes faster — bank statement or DSCR?

Accepted Answer

DSCR loans often close faster. There's less personal financial documentation to gather and verify.

Question 6

Can I have both a bank statement loan and a DSCR loan at the same time?

Accepted Answer

Yes. Some borrowers use a bank statement loan for their home and a DSCR loan for rentals. We structure both.

Bank Statement vs DSCR Loans in Grand Terrace