DSCR Loan vs Conventional Loan
Qualify on the property, or on your personal income.
For an investment property, the core difference is what you qualify on. A DSCR loan looks at whether the property's rent covers its payment, with no personal income documentation, and it can be held in an LLC with no cap on how many you own. A conventional loan qualifies you on your personal income and debt-to-income ratio, usually offers a lower rate, but limits how many financed properties you can hold.
If you are self-employed, scaling past the conventional property limit, or want to hold in an LLC, a DSCR loan removes the income-doc and property-count hurdles. If you have strong W-2 income and only a few rentals, a conventional loan's lower rate may win.
Rates and terms shown are typical figures, subject to underwriting and market conditions. Not a commitment to lend.
Common questions
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