Question 1

Can I use both loan types for the same property?

Accepted Answer

No. DSCR requires non-owner occupancy. Bank statement loans allow owner occupancy. You can't meet both requirements simultaneously on one property.

Question 2

Which has better rates in Daly City?

Accepted Answer

Rates run similar since both are non-QM products. DSCR sometimes prices slightly better for strong rental properties with high coverage ratios. Expect 1-2% above conventional rates for either option.

Question 3

Do bank statement loans work for rental properties?

Accepted Answer

Yes. Bank statement loans allow investment properties. But if you don't want to show personal income, DSCR makes more sense since it skips income verification entirely.

Question 4

What if my rental income barely covers the payment?

Accepted Answer

DSCR lenders typically want 1.0 or higher coverage. If rent exactly equals the payment, some lenders approve it. Below 1.0, you'll need compensating factors like higher credit or larger down payment.

Question 5

Can I refinance from one to the other?

Accepted Answer

You can refinance a bank statement loan to DSCR if you convert the home to a rental. Going the other direction requires moving back in, which makes the property owner-occupied again.

Bank Statement vs DSCR Loans in Daly City: Which Non-QM Loan Fits Your Strategy?