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, you'd need a bank statement or conventional loan.

Question 2

Do bank statement loans require good credit?

Accepted Answer

Yes. Most lenders want a 620–660 minimum. Better scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

What DSCR ratio do lenders typically require?

Accepted Answer

Most lenders want a DSCR of 1.0 or higher. Some allow below 1.0 with a larger down payment.

Question 4

Can I use an LLC for either loan?

Accepted Answer

DSCR loans commonly close in an LLC. Bank statement loans typically require individual borrowers, though some lenders allow exceptions.

Question 5

Which loan has a higher down payment requirement?

Accepted Answer

Both typically require 20–25% down. DSCR loans may require more depending on the DSCR ratio and property type.

Question 6

Which loan is faster to close in Red Bluff?

Accepted Answer

DSCR loans are often faster since there's no personal income analysis. Bank statement loans take longer to underwrite.

Bank Statement vs DSCR Loans in Red Bluff, CA