Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. For a primary residence, bank statement is the right non-QM option.

Question 2

Do bank statement loans require perfect credit?

Accepted Answer

Not perfect, but lenders want solid credit — typically 660 or higher. Expect stricter standards than FHA.

Question 3

What counts as a good DSCR ratio?

Accepted Answer

Most lenders want a DSCR of 1.0 or above. That means rent covers the full mortgage payment.

Question 4

Can I use both loans at the same time?

Accepted Answer

Yes. A self-employed investor could use a bank statement loan for their home and a DSCR loan for a rental.

Question 5

Which loan has the lower rate?

Accepted Answer

Neither has a universal edge. Both are non-QM and priced above conventional. Rates vary by borrower profile and market conditions.

Question 6

Do I need Santa Paula rental history for a DSCR loan?

Accepted Answer

No prior rental history needed. Lenders use a current lease or a market rent appraisal to calculate DSCR.

Bank Statement vs DSCR Loans in Santa Paula