Question 1

Can I use a bank statement loan for an investment property?

Accepted Answer

Some lenders allow it, but most don't. Bank statement loans are designed for primary and second homes. DSCR loans are the standard for investment properties with flexible income.

Question 2

Do DSCR loans require reserves?

Accepted Answer

Yes, most programs want 6-12 months of property reserves. That's 6-12 months of principal, interest, taxes, and insurance sitting in your account at closing.

Question 3

What if my DSCR is below 1.0?

Accepted Answer

Some lenders go as low as 0.75 DSCR with 25-30% down and strong credit. Rates increase as DSCR drops below 1.0.

Question 4

Can I combine bank accounts from multiple businesses?

Accepted Answer

Yes, most lenders let you combine personal and business accounts. Some even blend accounts from multiple businesses you own to maximize qualifying income.

Question 5

Which loan type has faster approval?

Accepted Answer

DSCR loans close faster. No income verification means less documentation. Bank statement loans need 12-24 months of statements reviewed and analyzed.

Bank Statement vs DSCR Loans in Hillsborough: Which Fits Your Strategy?