Question 1

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

Accepted Answer

Yes. Bank statement loans work for investment properties, primary homes, and second homes. You still need to prove business income through deposits.

Question 2

Do DSCR loans require higher down payments?

Accepted Answer

Usually 20-25% down. Some lenders go to 15% if the DSCR is strong. Bank statement loans often start at 10-15% down.

Question 3

Which loan has better rates?

Accepted Answer

Rates vary by borrower profile and market conditions. DSCR rates tend to run slightly higher because they ignore personal income entirely.

Question 4

Can I qualify for both loan types?

Accepted Answer

Yes, if you're buying an investment property. Choose based on which documentation path is easier and which rate is better.

Question 5

What if my rental property doesn't cash flow yet?

Accepted Answer

DSCR won't work. Use a bank statement loan instead, proving income through your business deposits rather than the property's rent.

Bank Statement vs DSCR Loans in Portola Valley: Which Works for Your Property?