Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. Owner-occupied purchases require a different loan type, like a bank statement loan.

Question 2

Do bank statement loans require tax returns?

Accepted Answer

No. That's the point. Lenders use 12 to 24 months of deposits to calculate your qualifying income instead.

Question 3

What DSCR ratio do lenders want?

Accepted Answer

Most lenders require a DSCR of at least 1.0. Many prefer 1.1 or higher. A ratio below 1.0 means rent doesn't cover the payment.

Question 4

Which loan has better rates — bank statement or DSCR?

Accepted Answer

Both carry non-QM pricing, which runs higher than conventional. Rates vary by borrower profile and market conditions.

Question 5

Can a self-employed investor use a bank statement loan for a rental?

Accepted Answer

Yes, some lenders allow it. But DSCR is usually simpler for rentals — it skips personal income review entirely.

Question 6

How many months of bank statements do lenders require?

Accepted Answer

Most lenders want 12 to 24 months. Business and personal accounts are evaluated differently — your broker will tell you which to use.

Bank Statement vs DSCR Loans in Saratoga, CA