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 non-QM option.

Question 2

Do Bank Statement loans require good credit?

Accepted Answer

Most lenders want a 620 minimum, but better rates kick in above 700. Credit score matters more here than with DSCR.

Question 3

Can I hold a DSCR loan in an LLC?

Accepted Answer

Yes — most DSCR lenders allow LLC vesting. Bank Statement loans typically require personal title on the property.

Question 4

Which loan closes faster?

Accepted Answer

DSCR loans often close faster. There's less income documentation to verify. Bank Statement loans need time to analyze deposits.

Question 5

What if my property breaks even — will DSCR still work?

Accepted Answer

Some lenders allow DSCR below 1.0, but expect higher rates and a larger down payment. A ratio at or above 1.1 is a much stronger file.

Bank Statement vs DSCR Loans in Mountain View