Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. Owner-occupied homes require a different loan type.

Question 2

What credit score do these loans require?

Accepted Answer

Most lenders want 660–680 minimum for both programs. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

Can a self-employed investor use both loan types?

Accepted Answer

Yes. If you're self-employed and buying a rental, you may qualify under either program. We compare both options for you.

Question 4

Do Bank Statement loans cost more than conventional?

Accepted Answer

Yes, rates run higher than conventional loans. You're trading documentation flexibility for a slightly higher rate.

Question 5

How is DSCR calculated?

Accepted Answer

Divide the monthly rent by the full mortgage payment. A result of 1.0 or above is the basic threshold most lenders require.

Question 6

Which loan closes faster in Farmersville?

Accepted Answer

DSCR can close faster since it skips income analysis. Bank Statement loans require more document review up front.

Bank Statement vs DSCR Loans in Farmersville, CA