Question 1

Can I use a DSCR loan to buy a primary residence?

Accepted Answer

No. DSCR loans are investment property only. For a primary home, bank statement loans are the non-QM option.

Question 2

Do bank statement loans work for rental properties?

Accepted Answer

Yes. If you're self-employed and buying a rental, bank statement loans work. DSCR may offer better terms depending on the deal.

Question 3

Which loan has lower rates in Yuba City?

Accepted Answer

Rates vary by borrower profile and market conditions. Neither consistently beats the other — it depends on credit, down payment, and property.

Question 4

How much do I need to put down on a DSCR loan?

Accepted Answer

Most DSCR lenders want 20–25% down. Some allow less with stronger cash flow numbers or higher credit scores.

Question 5

What if my DSCR ratio is below 1.0?

Accepted Answer

Some lenders allow sub-1.0 DSCR with a larger down payment. Options exist, but terms get tighter fast.

Question 6

Can I qualify for both loan types at once?

Accepted Answer

Yes. Some investors use a bank statement loan for one deal and a DSCR loan for another. They're not mutually exclusive.

Bank Statement vs DSCR Loans in Yuba City