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DSCR vs. bank-statement loans: which fits?
Two Non-QM tools for self-employed borrowers, built for different properties.
By James Forte, NMLS 16443 · Updated October 13, 2026
Short answer: If you will live in the home, a bank-statement loan is usually the tool because DSCR does not allow owner-occupancy. If it is a rental, compare both: DSCR qualifies on rent, and bank-statement qualifies on your deposits.
Bank-statement loans
Qualify on 12–24 months of deposits. Primary homes, second homes, and often investment properties. Best when your deposits are strong and steady. See typical requirements.
DSCR loans
Qualify on the property’s rent compared with the payment. Investment property only. Best when the rent clearly covers the payment, or when your personal income is hard to document. What is a DSCR loan?
How to choose for a rental
- Rent covers the payment comfortably: DSCR is often simpler.
- Rent is thin but your deposits are strong: bank-statement may qualify for more.
- Closing in an LLC: DSCR programs commonly allow it.
Bank-statement by state: Connecticut, New York, New Jersey, Massachusetts, Pennsylvania, Florida, South Carolina, North Carolina, Texas.
DSCR by state: Connecticut, New York, New Jersey, Massachusetts, Pennsylvania, Florida, South Carolina, North Carolina, Texas.
General information, not a rate quote, a commitment to lend, or legal or tax advice. All loans are subject to credit, income, property, and underwriting approval.
Frequently asked questions
Can I use a DSCR loan for my own home?
No. DSCR is for investment property. For a home you live in, look at bank-statement or other options.
Which one is cheaper?
It depends on the file. Pricing varies with credit, down payment, and the property. We can quote both.
Can Forte Financial do both?
Yes. In Connecticut, Florida, South Carolina, and Texas we can fund either program in-house or shop it. In New York, New Jersey, Massachusetts, Pennsylvania, and North Carolina we shop both with our investor network as a licensed broker; in New York, loans are arranged through third parties.
Fastest way to start
Talk to us about Non-QM financing
Questions about your situation? Call or apply. Forte Financial funds loans in-house as a licensed lender in Connecticut, Florida, South Carolina, and Texas, and can still shop a loan if another investor fits better. In New York, New Jersey, Massachusetts, Pennsylvania, and North Carolina, we work as a licensed mortgage broker and shop your loan with our investor network. In New York, loans are arranged through third parties.
- Tell us: live there or rent it?
- Bring statements and the rent.
- Subject to underwriting.
Licensed lender and broker. No rate, approval, or timeline guarantees.