Side-by-Side Comparison
DSCR vs Conventional for Investors
Real estate investors face a choice: qualify on personal income (conventional) or qualify on rental income (DSCR). Each has trade-offs depending on your tax situation and portfolio size.
Feature Comparison
| Feature | DSCR Loan | Conventional Loan |
|---|---|---|
| Min Credit Score | 660+ | 620+ |
| Income Documentation | None — rent income only | W-2s, tax returns, pay stubs |
| Qualifying Metric | DSCR ≥ 0.76x (rent / PITIA) | Debt-to-income ≤ 45% |
| Min Down Payment | 20% | 15–25% (investment) |
| Max Properties Financed | Unlimited | 10 (Fannie/Freddie limit) |
| LLC / Entity Eligible | Yes | No (personal borrower required) |
| Rate vs Conventional | Slightly higher (non-QM) | Lower (conforming) |
| Loan Limit | Up to $3M+ (lender-dependent) | $766,550 standard; higher in HCOLs |
| PMI Required | No | If down payment < 20% |
| Short-Term Rental Income | Yes (Airbnb/VRBO) | Limited — requires history |
Min Credit Score
DSCR Loan
660+
Conventional Loan
620+
Income Documentation
DSCR Loan
None — rent income only
Conventional Loan
W-2s, tax returns, pay stubs
Qualifying Metric
DSCR Loan
DSCR ≥ 0.76x (rent / PITIA)
Conventional Loan
Debt-to-income ≤ 45%
Min Down Payment
DSCR Loan
20%
Conventional Loan
15–25% (investment)
Max Properties Financed
DSCR Loan
Unlimited
Conventional Loan
10 (Fannie/Freddie limit)
LLC / Entity Eligible
DSCR Loan
Yes
Conventional Loan
No (personal borrower required)
Rate vs Conventional
DSCR Loan
Slightly higher (non-QM)
Conventional Loan
Lower (conforming)
Loan Limit
DSCR Loan
Up to $3M+ (lender-dependent)
Conventional Loan
$766,550 standard; higher in HCOLs
PMI Required
DSCR Loan
No
Conventional Loan
If down payment < 20%
Short-Term Rental Income
DSCR Loan
Yes (Airbnb/VRBO)
Conventional Loan
Limited — requires history
Which Is Right for You?
Choose DSCR Loan If...
Self-employed investors, large portfolios, LLC buyers, or those with low taxable income who rely on rental cash flow.
Choose Conventional Loan If...
W-2 investors with strong personal income who want the lowest possible rate on a limited number of properties.
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