Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, self-employed borrowers need a Bank Statement loan.

Question 2

Do both loans require good credit?

Accepted Answer

Yes. Most lenders want 680+ for Bank Statement and 660+ for DSCR. Higher scores get better pricing on both.

Question 3

Which loan closes faster?

Accepted Answer

DSCR often closes faster. There's no income analysis — lenders just verify the rent covers the payment.

Question 4

Can a self-employed investor use both loans?

Accepted Answer

Yes. You might use a Bank Statement loan for your home and a DSCR loan for a rental. They serve different properties.

Question 5

What down payment do these loans require?

Accepted Answer

Bank Statement loans typically need 10-20% down. DSCR loans usually require 20-25% for investment properties.

Question 6

Are these loans available for LLCs?

Accepted Answer

DSCR loans commonly close in an LLC's name. Bank Statement loans typically require individual borrower qualification.

Bank Statement vs DSCR Loans in Montclair, CA