Compare loan options
A DSCR loan qualifies an investment property on the rent it brings in, measured by its debt-service-coverage ratio, rather than on your personal income. A conventional loan qualifies you on your own income and debts. For investors who are self-employed or scaling a portfolio, that difference decides which door is open.
Side by side
| DSCR loan | Conventional loan | |
|---|---|---|
| Qualifies on | The property’s rental cash flow (debt-service-coverage ratio) | Your personal income, debts, and credit |
| Income documents | No personal income or employment verification in most cases | Pay stubs, W-2s or 1099s, tax returns |
| Purpose | Business-purpose investment property | Primary, second home, or investment |
| Number of properties | Typically flexible for growing portfolios | Limited by how many financed properties you carry |
| Best when | You are self-employed, scaling, or want to keep tax returns out of it | You have clean documentable income and few properties |
DSCR loans are business-purpose financing for non-owner-occupied property and are not subject to the same consumer-mortgage rules as owner-occupied loans. Guidelines vary by investor; this is education, not an offer of credit.
Which way to lean
Logan’s take: this is the investor workhorse. When the rent covers the payment, a DSCR loan keeps your personal tax returns out of the file, which is exactly what scaling investors want.
Logan’s take: for a first rental with strong personal income, conventional often costs less. DSCR earns its keep once documentation or property count gets in the way.
In Colorado
Common questions
A loan that qualifies an investment property on its debt-service-coverage ratio, the rent it generates versus the payment, instead of your personal income.
Usually no. Most DSCR programs verify the property’s rental cash flow rather than your personal income or employment.
No. DSCR loans are business-purpose financing for non-owner-occupied investment property. For a primary residence, conventional, FHA, or VA is the path.
Pricing reflects the flexibility, so it can be. The trade is access and simpler documentation; we compare both on your actual deal.
Keep exploring
Often the lower long-run cost when credit and savings are strong.
Learn moreQualify an investment property on its own rental cash flow.
Learn moreShort-term financing to buy, renovate, and exit.
Learn moreThis comparison is general education, not a commitment to lend or a guarantee of any rate, term, or program eligibility. Program rules are set by the agencies and investors named and change over time; we confirm current guidelines against your specific situation. All loans subject to credit approval; not all applicants qualify.
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