Comparison Guide
DSCR Loan vs Conventional Investment Property Loan
Understanding the key differences between DSCR loans and conventional investment property financing.
Key Differences
While both loan types can finance investment properties, they differ significantly in qualification requirements, flexibility, and scalability. Here's what you need to know.
Feature
DSCR Loan
Conventional
Income Verification
Not required - property cash flow only
Required - W-2s, tax returns, pay stubs
Property Limit
Unlimited
10 financed properties maximum
DTI Requirements
Not applicable
43-50% max DTI
Closing Time
21-30 days
30-45 days
Interest Rate
Mid 6% range
Upper 6% to low 7% range
Down Payment
20-25%
15-25%
Credit Score
640 minimum
620-680 minimum
Best For
Portfolio investors, self-employed
First-time investors, W-2 income
Calculate Your DSCR
Wondering if your property qualifies for DSCR financing? Use our calculator to quickly determine your debt service coverage ratio.
Use the DSCR CalculatorWhen to Choose DSCR
- You want to scale beyond 10 financed properties
- You are self-employed or have complex income
- You prefer to avoid DTI calculations
- The property has strong rental income
- You want faster, streamlined approval
- You are focused on portfolio growth
When to Choose Conventional
- You have stable W-2 income and clean tax returns
- You are financing your first 1-2 investment properties
- You qualify for slightly better conventional rates
- You are comfortable with income documentation
- You will not exceed 10 financed properties
Find the Right Financing for Your Investment Property
Not sure which loan type is right for your situation? Submit your deal and our team will help you evaluate your best options.