Question 1

Can I use a DSCR loan to buy a home I'll live in?

Accepted Answer

No. DSCR is for investment properties only. For a primary residence, Bank Statement is the right non-QM option.

Question 2

Do Bank Statement loans require good credit?

Accepted Answer

Most lenders want a 660+ score, though some go lower with a larger down payment. Credit still matters on these loans.

Question 3

What's the minimum down payment on a DSCR loan?

Accepted Answer

Expect 20-25% down on most DSCR loans. Some lenders allow 15% with stronger cash flow numbers.

Question 4

Can a self-employed investor use both loan types?

Accepted Answer

Yes. Many investors use DSCR for rentals and Bank Statement for a personal purchase. We structure both regularly.

Question 5

Are rates higher on non-QM loans like these?

Accepted Answer

They typically run above conventional rates. Rates vary by borrower profile and market conditions.

Question 6

Which loan closes faster in Morgan Hill?

Accepted Answer

DSCR usually closes faster. Income isn't calculated — lenders just verify the rent covers the payment.

Bank Statement vs DSCR Loans in Morgan Hill