Question 1

Can I use both loans at the same time?

Accepted Answer

Yes. A Bank Statement loan can cover your primary home. A DSCR loan can fund a separate rental. They serve different purposes.

Question 2

Do DSCR loans check my credit score?

Accepted Answer

Yes. Most DSCR lenders require at least a 620 credit score. Some programs allow lower scores with a larger down payment.

Question 3

How many bank statements do I need?

Accepted Answer

Most lenders want 12 months minimum. Some require 24. Business accounts often get a higher income credit than personal accounts.

Question 4

What DSCR ratio do lenders want in rural areas?

Accepted Answer

Most lenders target a 1.20 DSCR or higher. Rural rental markets like Siskiyou County can be harder to appraise for rent schedules.

Question 5

Are rates higher on these loans than conventional?

Accepted Answer

Yes. Both are Non-QM products. Expect a rate premium over conventional. Rates vary by borrower profile and market conditions.

Question 6

Can a self-employed investor use a Bank Statement loan for a rental?

Accepted Answer

Technically yes, but DSCR is usually cleaner. It avoids income doc requirements entirely when the rent supports the payment.

Bank Statement vs DSCR Loans in Etna, CA