Question 1

Can I use a Bank Statement Loan for a rental property in South San Francisco?

Accepted Answer

Yes, Bank Statement Loans work for investment properties. However, DSCR Loans often provide easier qualification for rentals since they ignore your personal income entirely and focus on rental cash flow.

Question 2

Which loan type has lower interest rates?

Accepted Answer

Rates vary by borrower profile and market conditions. Both are non-QM products with similar rate ranges. Your credit score, down payment, and property details affect pricing more than the loan type itself.

Question 3

Do I need tax returns for either loan?

Accepted Answer

DSCR Loans never require personal tax returns. Bank Statement Loans sometimes request them for background verification but don't use them for income calculation—your bank deposits determine qualifying income.

Question 4

Can I combine these loans for different properties?

Accepted Answer

Absolutely. Many investors use Bank Statement Loans for their primary residence while financing rental properties through DSCR Loans. Each property qualifies independently based on the appropriate income source.

Question 5

What down payment do these loans require in San Mateo County?

Accepted Answer

Both typically require 15-25% down, though exact amounts depend on credit scores and property characteristics. DSCR Loans may need larger down payments for properties with lower rental income ratios.

Bank Statement Loans vs DSCR Loans in South San Francisco: Which Financing Fits Your Goals?