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DSCR loan vs conventional investment property loan: which is better?

Short answerConventional investment loans usually offer lower rates but require full personal income documentation, tax returns, and DTI limits. DSCR loans qualify on the property's rental income alone, which helps self-employed or highly leveraged investors, but they carry higher rates and larger down payments. If your personal income easily qualifies, conventional is typically cheaper.
Reviewed by Juan Fernando Romero, NMLS 2557318Updated

The details

Conventional investment loans also cap the number of financed properties per borrower, while DSCR lenders often have no such cap.

DSCR loans close in entity names like LLCs at many lenders, which conventional loans generally do not allow.

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