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, you'd need a bank statement or conventional loan.

Question 2

What credit score do I need for each loan?

Accepted Answer

Most lenders want at least 620–640 for both. Stronger scores get better rates on either product. Rates vary by borrower profile and market conditions.

Question 3

Do bank statement loans require a large down payment?

Accepted Answer

Typically 10–20% down, depending on the lender and your credit profile. Non-QM loans carry more risk, so lenders price accordingly.

Question 4

How is DSCR calculated for a Watsonville rental?

Accepted Answer

Divide the monthly rent by the total mortgage payment. Above 1.0 means the rent covers the debt. Most lenders want 1.1 or better.

Question 5

Which loan closes faster?

Accepted Answer

DSCR often moves quicker. No personal income review means less back-and-forth with underwriting. Bank statement loans take more doc review time.

Question 6

Can I use both loans at the same time?

Accepted Answer

Yes. A self-employed investor could use bank statement for their home and DSCR for a rental. We structure this for clients regularly.

Bank Statement vs DSCR Loans in Watsonville, CA