Question 1

Can I use a bank statement loan to buy a rental property?

Accepted Answer

Yes. Bank statement loans work for investment property, but DSCR is usually cheaper and easier because you don't document personal income.

Question 2

Do DSCR loans require proof of rental income?

Accepted Answer

Lenders use a market rent appraisal or signed lease to verify income. You don't need a tenant in place before closing.

Question 3

Which loan has lower rates?

Accepted Answer

DSCR typically prices slightly lower than bank statement loans. Both run 1% to 2% above conventional rates depending on credit and down payment.

Question 4

Can I avoid income documentation with both options?

Accepted Answer

DSCR skips personal income entirely. Bank statement loans require 12 to 24 months of deposit history but no tax returns.

Question 5

What credit score do I need for each loan?

Accepted Answer

Bank statement loans start at 620. DSCR loans typically need 640 minimum, though some lenders go higher for low ratios.

Bank Statement Loans vs DSCR Loans: Which Fits Your San Bruno Strategy?