Question 1

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

Accepted Answer

No. DSCR loans are for investment properties only. For a primary home, a bank statement loan is your non-QM option.

Question 2

What credit score do I need for each loan?

Accepted Answer

Most lenders want 660–680 minimum for bank statement loans. DSCR loans often start at 620–640, though better scores get better rates.

Question 3

How much do I need to put down?

Accepted Answer

Bank statement loans typically require 10–20% down. DSCR loans usually start at 20–25% for investment properties.

Question 4

Can a self-employed investor use either loan?

Accepted Answer

Yes. If you own a rental and the rent covers the mortgage, DSCR works regardless of how you earn personal income.

Question 5

Which loan closes faster in Yolo County?

Accepted Answer

DSCR loans often close faster. There's less personal income documentation to collect and verify.

Question 6

Do both loans carry higher rates than conventional?

Accepted Answer

Yes — both are non-QM loans and carry a rate premium over conventional. Rates vary by borrower profile and market conditions.

Bank Statement vs DSCR Loans in Woodland, CA