Question 1

Can I use bank statement loans for rental properties?

Accepted Answer

Yes, but DSCR is usually better for pure investment deals. Bank statement makes sense when you want to show personal income for a property you might occupy.

Question 2

What credit score do I need for each loan type?

Accepted Answer

Bank statement programs start at 620. DSCR lenders typically want 680 or higher, though some go to 660 with larger down payments.

Question 3

Do both loan types have higher rates than conventional mortgages?

Accepted Answer

Yes. Non-QM loans carry more risk for lenders. Expect rates 1-2% above conventional, varying by credit and down payment. Rates vary by borrower profile and market conditions.

Question 4

How much documentation do I need for DSCR loans?

Accepted Answer

Minimal personal docs—credit report, asset statements, rental income documentation. No tax returns or employment verification required for most programs.

Question 5

Can I combine both loan types for different properties?

Accepted Answer

Absolutely. Use bank statement for your primary residence and DSCR for rental properties. Different tools for different situations.

Bank Statement vs DSCR Loans in Sonoma: Which Non-QM Option Fits Your Strategy?