Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

No. DSCR Loans are for investment properties only. Use a Bank Statement Loan if you're buying a home to live in.

Question 2

Do both loans require good credit?

Accepted Answer

Yes. Most Non-QM lenders want at least a 620–640 score. Higher scores get better rates on both programs.

Question 3

Which loan has a higher down payment requirement?

Accepted Answer

DSCR Loans typically require 20–25% down. Bank Statement Loans may go lower depending on the lender.

Question 4

Can a self-employed investor use either loan?

Accepted Answer

Yes. A self-employed investor buying a rental could qualify for either. We run both scenarios to find the better fit.

Question 5

What if my rental property doesn't hit a 1.0 DSCR?

Accepted Answer

Some lenders allow below 1.0 with a higher down payment. A Bank Statement Loan may work better in that case.

Question 6

How long does it take to close these loans in Scotts Valley?

Accepted Answer

Most Non-QM loans close in 21–30 days. Having your bank statements or lease ready speeds things up.

Bank Statement vs DSCR Loans in Scotts Valley