Question 1

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

Accepted Answer

No. DSCR is investment-only. For a primary or second home, Bank Statement is the right Non-QM option.

Question 2

Do Bank Statement loans require good credit?

Accepted Answer

Most lenders want a 660 or higher. Some go down to 620, but rates climb sharply below 680.

Question 3

What DSCR ratio do lenders want in San Diego?

Accepted Answer

Most want 1.0 or above. Higher ratios get better rates. Below 1.0 is possible but harder to place.

Question 4

Which loan has the lower interest rate?

Accepted Answer

Both run higher than conventional loans. Rates vary by borrower profile and market conditions — neither is clearly cheaper.

Question 5

Can a self-employed investor use either loan?

Accepted Answer

Yes. For rentals, DSCR is usually simpler. For a personal purchase, Bank Statement is the only Non-QM path.

Question 6

How many bank statements do I need for a Bank Statement loan?

Accepted Answer

Lenders require 12 to 24 months. Most San Diego lenders prefer 24 months for a cleaner income average.

Bank Statement vs DSCR Loans in San Diego