DSCR Loan vs Bank Statement Loan for Investors
Both DSCR and bank statement loans skip tax returns, but they ask different questions. DSCR: does the property pay for itself? Bank statement: do your business deposits show enough income? For investment property, DSCR is usually simpler. For mixed-use cases (primary residence buyer with rental side income), bank statement may fit better.
DSCR Loan
Qualify on the property's rental cash flow.
Best for: Pure investment property purchases and refinances where the property cash-flows.
Pros
- +No income docs at all (W-2 or self-employed)
- +No DTI calculation
- +Designed for investors — closes in LLC, no cap on properties
Cons
- −Property must DSCR (or no-ratio with higher down)
- −Investment property only
Bank Statement Loan
Qualify self-employed borrowers using 12–24 months of bank deposits.
Best for: Self-employed borrowers buying a primary residence, second home, or a single rental as a secondary qualification path.
Pros
- +No tax returns required
- +Available for primary residence, second home, OR investment
- +Personal account: 100% of deposits typically credited
Cons
- −Still calculates a DTI — high deposits do not unlock unlimited rentals
- −Business account: ~50% expense ratio applied
- −More document scrubbing than DSCR (bank statements sourced for large deposits)
| Field | DSCR Loan | Bank Statement Loan |
|---|---|---|
| Min FICO | 660+ | 660+ |
| LTV (purchase) | Up to 80% | Up to 85% (primary), 80% (investment) |
| LTV (cash-out) | Up to 75% | Up to 80% |
| Income docs | DSCR (rent vs payment) | Bank deposits / 12 or 24 months |
| Term | 30-year fixed, IO options | 30-year fixed, ARM, IO |
| Time to close | 21–30 days | 30 days typical |
Which one should you choose?
- DSCR Loan: choose DSCR if the property is an investment and rent covers the payment. Cleaner underwriting, less to verify.
- Bank Statement Loan: choose bank statement if you are buying a primary residence or second home, OR if you want a single non-QM product that works across your whole borrowing life.
- For a single investment property where DSCR is borderline, run both — bank statement may give you higher LTV at the same scenario.
Frequently asked questions
Can I use a bank statement loan for an investment property?
Yes, most bank statement programs allow investment property at lower LTV (typically 75–80% vs. 85% on primary).
Which loan has the better rate?
DSCR and bank statement rates are usually within 0.25–0.5% of each other. Bank statement often slightly cheaper for primary residence; DSCR often slightly cheaper for investment because the loan is sized purely on the asset.
Can I combine the two — DSCR with personal income for additional qualifying?
No. They are different programs. DSCR ignores personal income entirely; bank statement requires it. Pick one based on the property type.
Not sure which fits your scenario?
Tell us the deal — we'll come back with the right product and current pricing.
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No-Ratio DSCR
No-ratio DSCR investment property loans. Qualify even if rent does not cover the mortgage payment. Higher down payment in exchange.
Foreign National
Investment property loans for non-resident foreign nationals. No US credit, no US income, qualify on rental income. Close in your name or LLC.
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