Comparison
DSCR Loan vs. Conventional Loan for Rental Property
Side-by-side comparison of DSCR and conventional loans — underwriting differences, rate comparisons, flexibility, loan limits, and which investor profile each fits best.
Side-by-side comparison of DSCR and conventional loans — underwriting differences, rate comparisons, flexibility, loan limits, and which investor profile each fits best.
Conventional loans offer lower rates but require personal income verification and cap at 10 financed properties. DSCR loans offer flexibility at a higher rate. If you show strong W-2/taxable income and own fewer than 10 properties, conventional may save money. If you're self-employed, need LLC vesting, or have maxed out conventional limits, DSCR is the path forward.
| Feature | Conventional | DSCR | Winner |
|---|---|---|---|
| Rate | Lower (6-7%) | Higher (7.5-9%) | Conventional |
| Income Docs | W-2, tax returns, DTI | None required | DSCR |
| Entity Vesting | No | LLC, corp, trust | DSCR |
| Property Limit | 10 financed | Unlimited | DSCR |
| Loan Amount | ~$766K limit | $3M+ | DSCR |
| Prepayment | No penalty | 3-5 year penalty | Conventional |
Submit your scenario and we'll help evaluate which path fits your situation.
Disclaimer: Educational only.
Last Updated: June 21, 2026