Question 1

Can I use a DSCR loan to buy a property I'll live in?

Accepted Answer

No. DSCR is investment property only. For a primary residence, you'd need Bank Statement or another program.

Question 2

Do I need good credit for either loan?

Accepted Answer

Yes. Both are non-QM but lenders still check credit. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

Which loan closes faster in Davis?

Accepted Answer

DSCR often moves faster. There's no income analysis — just lease docs and an appraisal with a rent schedule.

Question 4

Can I use a Bank Statement Loan to buy a Davis rental?

Accepted Answer

Yes. Bank Statement Loans work for investment properties too. But if the rent covers the mortgage, DSCR might get you a better structure.

Question 5

What's the minimum DSCR most lenders accept?

Accepted Answer

Most want 1.1 or higher. That means rent must exceed the mortgage payment by at least 10%.

Question 6

Are these loans available for LLCs?

Accepted Answer

DSCR loans commonly close in an LLC. Bank Statement Loans usually require an individual borrower on the note.

Bank Statement vs DSCR Loans in Davis, CA