Question 1

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

Accepted Answer

Yes, but a DSCR loan is usually a better fit. DSCR doesn't factor your personal income at all, which often means easier approval on rentals.

Question 2

Do DSCR loans require any income documentation?

Accepted Answer

No personal income docs required. Lenders verify the property's rent income — typically with a lease or market rent appraisal.

Question 3

Which loan has a lower minimum credit score?

Accepted Answer

Both are non-QM loans with flexible guidelines. Most lenders want at least 620–640 for either program. Rates vary by borrower profile and market conditions.

Question 4

Can I hold a DSCR loan inside an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Bank statement loans typically require the borrower to hold title personally.

Question 5

What down payment do these loans require?

Accepted Answer

Expect 10–20% down for bank statement loans and 20–25% for DSCR loans. Non-QM lenders set their own minimums, so it varies.

Question 6

Which loan is faster to close?

Accepted Answer

DSCR loans often close faster. There's less personal financial documentation to gather — just property income and an appraisal.

Bank Statement vs DSCR Loans in Goleta, CA