DSCR loan vs. Bank statement loan
These two non-QM loans solve different problems. A DSCR loan finances an investment property based on the property's rent — your personal income never enters the picture. A bank statement loan finances a home (often your primary residence) based on your business deposits. The choice is really about what you're buying and whose income should qualify it.
Buying a rental? DSCR. Buying a home for yourself with self-employed income? Bank statement.
Side by side
| Factor | DSCR loan | Bank statement loan |
|---|---|---|
| Qualifies on | Property rent (rent ÷ PITI) | Your business deposits |
| Property use | Investment / rental only | Primary, second home, or investment |
| Personal income docs | None | 12–24 months of bank statements |
| Down payment | 20–25% | 10–20% |
| Minimum credit | 620–660+ | 620–660+ |
| Best for | Rental investors avoiding income docs | Self-employed buyers of a home to live in |
Figures are representative ranges, not quotes, and vary by lender. Read the full guides: DSCR loan · Bank statement loan.
Who should pick dscr loan
Real-estate investors buying rentals who'd rather qualify on the property's cash flow than document personal income — especially with many properties or complex returns.
Who should pick bank statement loan
Self-employed buyers purchasing a primary or second home whose deposits reflect income their tax returns understate.
Bottom line
Still deciding? Take the 5-question loan quiz, compare every option on the loan types page, or size a purchase with the affordability calculator.
FAQ
No. DSCR loans qualify on rental income, so they're for investment property only. For a primary residence with self-employed income, a bank statement loan is the comparable non-QM option.
Bank statement loans typically start lower (10–20%) than DSCR loans (20–25%), partly because DSCR is investment-property lending, which always carries higher down payments and rates than owner-occupied loans.
Educational information only — not financial advice, and not a quote, pre-approval, or offer of credit. Mortgage Merlin is a publisher, not a lender or broker.