Question 1

Can I use a Bank Statement Loan to buy a rental?

Accepted Answer

Yes, but DSCR is usually the better fit. Bank Statement Loans work for any property type — DSCR just makes qualifying simpler for rentals.

Question 2

Do DSCR Loans check my credit score?

Accepted Answer

Yes. Most DSCR lenders require at least a 620 credit score. Strong credit improves your rate significantly.

Question 3

How many months of statements do I need?

Accepted Answer

Most lenders want 12 months minimum. Some programs use 24 months for a more favorable income calculation.

Question 4

Can I buy with an LLC using either loan?

Accepted Answer

DSCR loans commonly close in LLC names. Bank Statement Loans typically require individual borrowers, not entities.

Question 5

Which loan is faster to close?

Accepted Answer

DSCR tends to close faster. There's less income documentation to underwrite — lenders just need a rent analysis.

Question 6

Do both loans work for Encinitas short-term rentals?

Accepted Answer

DSCR can work if lenders accept short-term rental income projections. Not all do — we shop lenders who allow it.

Bank Statement vs DSCR Loans in Encinitas