Question 1

Can I use a Bank Statement loan for a rental property in San Luis Obispo?

Accepted Answer

Yes. Bank Statement loans work for investment properties. But if you don't need to document personal income, DSCR loans offer simpler approval.

Question 2

Which loan has better rates—Bank Statement or DSCR?

Accepted Answer

Rates vary by borrower profile and market conditions. DSCR rates often run slightly higher, but strong DSCR ratios above 1.25 can improve pricing.

Question 3

Do I need tax returns for either loan type?

Accepted Answer

No. Both skip tax return verification. Bank Statement loans use deposits, DSCR loans use rental income from the property.

Question 4

Can I combine both loan types for multiple properties?

Accepted Answer

Yes. Use Bank Statement for your primary home and DSCR for rental properties. Each loan is underwritten separately based on its own requirements.

Question 5

What credit score do I need for Bank Statement or DSCR loans?

Accepted Answer

Most lenders require 620 minimum. Scores above 680 unlock better rates and lower down payment options for both loan types.

Question 6

How long does underwriting take for each loan?

Accepted Answer

DSCR loans close faster—often 3-4 weeks. Bank Statement loans take longer since lenders analyze months of deposits and calculate income.

Bank Statement vs DSCR Loans in San Luis Obispo: Which Non-QM Option Fits Your Deal?