Quick Answer
DSCR loans: No tax returns, unlimited properties, faster approval (24-48 hours), higher rates (5.99-9.5%). Conventional: Requires tax returns, max 10 properties, slower approval (30-45 days), lower rates (5.5-7.5%).Choose DSCR for flexibility and speed. Choose conventional for lowest rate if you qualify.
DSCR Loan vs Conventional Loan
Head-to-Head Comparison
| Feature | DSCR Loan | Conventional |
|---|---|---|
| Tax Returns | ❌ NOT Required | ✅ Required (2 years) |
| Income Verification | ❌ None | ✅ Full verification |
| Interest Rate | 5.99% - 9.5% | 5.5% - 7.5% |
| Credit Minimum | 620 | 640-680 |
| Down Payment | 20-25% | 15-25% |
| Property Limit | ♾️ Unlimited | 🔟 Max 10 |
| Approval Time | 24-48 hours | 30-45 days |
| Closing Time | 7-14 days | 30-45 days |
| Self-Employed | ✅ Easy | ⚠️ Hard |
| DTI Limits | ❌ No limits | ✅ 43-50% max |
Detailed Comparison
DSCR Loan
- • No tax returns or income docs
- • Finance unlimited properties
- • 24-48 hour approval
- • No DTI calculation
- • Perfect for self-employed
- • Close in 7-14 days
- • 620 credit minimum
- • Rates 0.5-1.5% higher
- • Investment property only
- • Typically requires 25% down
Conventional Loan
- • Lower interest rates
- • 15% down possible
- • Can be primary/investment
- • Longer track record
- • Requires 2 years tax returns
- • Full income verification
- • Max 10 financed properties
- • 30-45 day close timeline
- • DTI limits (43-50% max)
- • Hard for self-employed
- • 640-680 credit needed
Cost Comparison Example
Same property, different loan types. See the actual numbers:
DSCR Loan
Conventional Loan
Which One Should You Choose?
You're self-employed with high write-offs
DSCRTax returns show low income. Conventional will deny you. DSCR only cares about property income.
You already own 10+ investment properties
DSCRConventional caps at 10 financed properties. DSCR has no limit.
You need to close in under 2 weeks
DSCRDSCR closes in 7-14 days. Conventional takes 30-45 days minimum.
You're W-2 employee with clean tax returns
ConventionalYou easily qualify for conventional. Save 0.5-1.0% on rate.
This is your first investment property
EitherCompare both. If you have clean W-2 income, conventional saves money. If self-employed, DSCR is easier.
You value privacy over lowest rate
DSCRDSCR doesn't require sharing tax returns or financial statements.
Get Pre-Approved for DSCR Loan
Skip the documentation hassle. Get approved in 24-48 hours with no tax returns required.