Question 1

Can I use a DSCR loan to buy a primary home in Cotati?

Accepted Answer

No. DSCR Loans are for investment properties only. For a home you'll live in, you'd need a Bank Statement Loan.

Question 2

What credit score do I need for each loan?

Accepted Answer

Most lenders want 660+ for Bank Statement Loans and 680+ for DSCR. Stronger scores mean better rates on both. Rates vary by borrower profile and market conditions.

Question 3

I'm self-employed and buying a rental — which loan fits?

Accepted Answer

Either can work. DSCR is simpler since lenders ignore your personal income. We'd compare both options for your deal.

Question 4

How does a lender calculate DSCR?

Accepted Answer

They divide the property's monthly rent by its total monthly debt payment. A ratio above 1.0 means the rent covers the mortgage.

Question 5

Do Bank Statement Loans cost more than conventional loans?

Accepted Answer

Yes. Non-QM loans carry higher rates than conventional financing. The tradeoff is qualifying without tax returns. Rates vary by borrower profile and market conditions.

Question 6

How many months of bank statements do lenders actually review?

Accepted Answer

Most lenders want 12 months minimum. Some require 24. Business accounts are analyzed separately from personal accounts.

Bank Statement vs DSCR Loans in Cotati, CA