Question 1

Can I use a DSCR loan to buy a primary residence in San Jose?

Accepted Answer

No. DSCR loans are investment property only. For a primary residence, bank statement is the right non-QM option.

Question 2

Do bank statement loans require a specific credit score?

Accepted Answer

Most lenders want at least 640–660. Stronger credit gets you better rates. Rates vary by borrower profile and market conditions.

Question 3

What DSCR ratio do lenders want for San Jose rentals?

Accepted Answer

Most lenders want a 1.0 minimum. Many prefer 1.25. High San Jose rents can help hit that threshold.

Question 4

Can I use both loans at the same time?

Accepted Answer

Yes. A self-employed investor could use bank statement for a primary home and DSCR for a rental. Each loan qualifies separately.

Question 5

Which loan closes faster — bank statement or DSCR?

Accepted Answer

DSCR often moves faster. There's less borrower documentation to collect and review. Bank statement underwriting takes more time.

Question 6

Can an LLC be on the loan for either program?

Accepted Answer

DSCR lenders commonly allow LLC vesting. Bank statement loans typically require individual borrower qualification. Confirm with your lender.

Bank Statement vs DSCR Loans in San Jose