Question 1

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

Accepted Answer

No. DSCR is investment property only. For a primary residence, Bank Statement is the non-QM path.

Question 2

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

Accepted Answer

Most lenders want at least two years. Some allow one year with strong deposits and reserves.

Question 3

What DSCR ratio do lenders want to see?

Accepted Answer

Most require 1.0 or above — meaning rent at least equals the mortgage payment. Some allow 0.75 with a bigger down payment.

Question 4

Which loan has the lower interest rate?

Accepted Answer

Bank Statement loans generally price slightly better than DSCR. Both carry non-QM premiums. Rates vary by borrower profile and market conditions.

Question 5

Can an LLC borrow on a DSCR loan?

Accepted Answer

Yes. DSCR lenders commonly lend to LLCs. Bank Statement lenders usually require an individual borrower.

Question 6

Which loan closes faster in Gilroy?

Accepted Answer

DSCR can close faster — there's less income documentation to gather. Bank Statement requires statement collection and underwriter review.

Bank Statement vs DSCR Loans in Gilroy, CA