Question 1

Can I use a Bank Statement loan for an investment property?

Accepted Answer

Yes, some lenders allow it. But DSCR usually offers better terms for rentals since the property income qualifies you.

Question 2

Do DSCR loans check my credit score?

Accepted Answer

Yes. Most DSCR lenders require a 620 to 680 minimum score. Higher scores get better rates.

Question 3

Which loan has a higher interest rate?

Accepted Answer

Both carry higher rates than conventional loans. DSCR rates often run slightly higher. Rates vary by borrower profile and market conditions.

Question 4

Can I use an LLC with either of these loans?

Accepted Answer

DSCR lenders commonly accept LLC borrowers. Bank Statement loans typically require individual borrowers.

Question 5

How long does approval take for these loans?

Accepted Answer

Non-QM loans like these generally close in 21 to 30 days. Having your statements ready speeds things up.

Question 6

What credit score do I need for a Bank Statement loan?

Accepted Answer

Most lenders want at least 620. A 700-plus score opens better rates and lower down payment options.

Bank Statement vs DSCR Loans in Los Altos Hills