Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, Bank Statement is the right Non-QM option.

Question 2

Do Bank Statement loans require two years of self-employment?

Accepted Answer

Most lenders want at least two years of self-employment history. Some accept 12 months with strong deposits and reserves.

Question 3

What DSCR ratio do lenders want in Santa Clara County?

Accepted Answer

Most lenders require a minimum DSCR of 1.0. Competitive deals in higher-priced markets often need 1.1 or above.

Question 4

Which loan has the higher interest rate?

Accepted Answer

Both carry higher rates than conventional loans. DSCR rates are often slightly higher due to investment property risk. Rates vary by borrower profile and market conditions.

Question 5

Can I use an LLC to get a DSCR loan?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. This is one reason investors prefer DSCR over Bank Statement for rental properties.

Question 6

Can a self-employed investor use both loan types?

Accepted Answer

Yes. A self-employed investor could use Bank Statement for a primary home and DSCR for a rental. We structure both.

Bank Statement vs DSCR Loans in Campbell, CA