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

Do Bank Statement loans work for rental properties?

Accepted Answer

Yes, but your personal income still qualifies the loan. If the numbers work, it's an option — though DSCR is usually cleaner for pure investment deals.

Question 3

What credit score do I need for either loan?

Accepted Answer

Most Non-QM lenders want at least 620. Higher scores get better rates on both programs. Rates vary by borrower profile and market conditions.

Question 4

Can I close a DSCR loan in an LLC?

Accepted Answer

Yes. Most DSCR lenders allow LLC vesting. Bank Statement loans typically require the borrower to take title personally.

Question 5

How many bank statements do I actually need?

Accepted Answer

Lenders generally want 12 or 24 months. Twenty-four months gives a stronger income average and may improve your qualifying number.

Question 6

Which loan closes faster in Tulelake?

Accepted Answer

DSCR loans often move faster — there's no income analysis, just a rent schedule and appraisal. Bank Statement reviews take more underwriting time.

Bank Statement vs DSCR Loans in Tulelake, CA