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 Below, you’ll find a breakdown of the most popular loan types, including Conventional, FHA, DSCR, and Bank Statement loans. Each loan type offers distinct benefits and requirements, so you can choose the one that fits your financial goals.  

Conventional

Best For:

The most common loan type. Borrowers with strong credit and stable income, including first-time and repeat homebuyers 

Minimum Credit Score:

620  

Benefits:

Competitive rates, flexible terms, no upfront mortgage insurance, and available for primary, second homes, or investment properties. 

Down Payment Amount:

As low as 3% down for First-Time Homebuyers. Otherwise- 5% down


FHA

Best For:

Buyers with limited savings and lower credit scores. 

Minimum Credit Score:

580 (with 3.5% down) 

500 (with 10% down)

Benefits:

Low down payment, flexible credit score guidelines, and higher DTI allowances. 

Down Payment Amount:

As low as 3.5% 


DSCR (Debt Service Coverage Ratio)

Best For:

Real estate investors looking to qualify based on rental income, not personal income. 

Minimum Credit Score:

Typically 660+ 

Benefits:

 No income docs or tax returns required. Approval based on property cash flow.

Down Payment Amount:

20% Down Minimum 


Bank Statement Loan

Best For:

Self-employed borrowers who don’t show enough income on tax returns. 

Minimum Credit Score:

Typically 660+ 

Benefits:

Use 12–24 months of personal or business bank statements to qualify. No W2s or tax returns required. Available for primary, second homes, or investment properties. 

Down Payment Amount:

15% Down Minimum


Equal Housing Lender | Molitor Financial Group, LLC. | 4619 N Ravenswood, Suite 300, Chicago, IL 60640 | NMLS ID #227034 

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