DSCR vs Conventional Loans: Investment Property Comparison 2024
Updated: October 4, 2024•12 min read•By Capital Bridge Solutions Team
Choosing between DSCR loans and conventional loans is one of the most important decisions for real estate investors. While conventional loans offer lower rates, DSCR loans provide flexibility that can be game-changing for portfolio growth. This comprehensive comparison helps you understand when to use each type for maximum ROI.
Side-by-Side Comparison
| Feature | DSCR Loans | Conventional Loans |
|---|---|---|
| Income Verification | Not Required | Required (W2s, Tax Returns) |
| Interest Rates | 7.25% - 9.75% | 6.50% - 8.25% |
| Down Payment | 20-25% | 15-25% |
| Credit Score Min | 620 | 620-640 |
| DTI Limits | None | 43-50% max |
| Property Limit | Unlimited | 10 properties max |
| Approval Time | 24-48 hours | 30-45 days |
| Best For | Self-employed, portfolio investors | W2 employees, first property |
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