Question 1

Can I use bank statements for a rental property?

Accepted Answer

Yes. Bank statement loans work for investment properties if your business income supports the debt. DSCR is often easier for pure rental deals.

Question 2

Which program has lower rates?

Accepted Answer

Bank statement loans typically price slightly better when credit and equity match. DSCR rates rise if your rental ratio falls below 1.0.

Question 3

Do both programs require tax returns?

Accepted Answer

Bank statement loans skip tax returns entirely. DSCR loans don't verify personal income, but some lenders request returns to confirm property ownership.

Question 4

Can I refinance with DSCR if I used bank statements to purchase?

Accepted Answer

Absolutely. Many investors buy with bank statement loans then refinance to DSCR once they have tenants. The rental income often qualifies better.

Question 5

What if my business deposits vary month to month?

Accepted Answer

Bank statement loans average your deposits over 12 to 24 months. Seasonal swings are fine as long as the overall trend supports the loan amount.

Bank Statement vs DSCR Loans: Which Non-QM Fits Your Redwood City Deal?