Question 1

Can I use a DSCR loan for my primary residence?

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, you'd need a Bank Statement loan or conventional financing.

Question 2

Do Bank Statement loans work for investment properties?

Accepted Answer

Yes. Bank Statement loans can fund both primary homes and investment properties. Your personal income is what's being verified, not the property's rent.

Question 3

Which loan has stricter credit requirements?

Accepted Answer

Both are non-QM loans with flexible credit standards. DSCR lenders often focus more on the property's income than your credit score.

Question 4

Can I use an LLC to get a DSCR loan?

Accepted Answer

Yes. Most DSCR lenders in California allow LLC vesting. That's one reason investors prefer DSCR over Bank Statement for rentals.

Question 5

What if my Santa Rosa rental barely breaks even?

Accepted Answer

A DSCR below 1.0 doesn't automatically disqualify you. Some lenders allow it with a larger down payment or stronger reserves.

Question 6

Can I use both loan types at the same time?

Accepted Answer

Yes. Some investors use a Bank Statement loan for their primary home and a DSCR loan for a rental. There's no rule against holding both.

Bank Statement vs DSCR Loans in Santa Rosa