Loan comparison
DSCR Loans vs Conventional Mortgages
A conventional mortgage qualifies you on your personal income; a DSCR loan qualifies the rental on its own income — which is why investors scaling a portfolio often switch.
Side-by-side
General comparison only — terms vary by deal. Call for current terms.
- Purpose
DSCR LoanBusiness-purpose financing built specifically for investment property.
Conventional MortgageConsumer financing for primary homes, second homes, and some rentals.
- Loan Term
DSCR LoanLong-term, similar in length to a traditional mortgage.
Conventional MortgageLong-term, with standardized terms.
- Payment Structure
DSCR LoanMonthly payments with fixed or adjustable options.
Conventional MortgageMonthly payments with fixed or adjustable options.
- Rehab Funding
DSCR LoanNot included — pair with a Fix & Flip loan if the property needs work.
Conventional MortgageGenerally not included outside of specialized renovation programs.
- Property Condition
DSCR LoanRent-ready or already leased.
Conventional MortgageMust meet agency property standards.
- How You Qualify
DSCR LoanMainly on the property's rent versus its payment. Personal income documents usually aren't required.
Conventional MortgageOn your personal income, employment, and debt-to-income ratio, with full documentation.
- Speed to Close
DSCR LoanA streamlined, property-focused process.
Conventional MortgageCan be slower due to full personal income verification.
- Exit Strategy
DSCR LoanHold, sell, or refinance on your timeline. Can close in an LLC.
Conventional MortgageHold, sell, or refinance. Usually closed in your personal name, and agency rules cap how many financed properties you can have.
Choose a DSCR Loan if…
- You're self-employed or your tax returns understate your income
- You want to close in an LLC or other entity
- You're growing past conventional limits on financed properties
- You want qualifying to focus on the property's cash flow
Choose a Conventional Mortgage if…
- You're buying a home you'll live in
- You have W-2 income that documents easily
- You only plan to own a few financed properties
- You're comfortable holding property in your personal name
Frequently asked questions
Is a DSCR loan harder to get than a conventional mortgage?
Not necessarily — it's different. Instead of your personal income and debt-to-income ratio, the focus is the property's rental income compared to its payment, plus your credit and reserves.
Can I use a DSCR loan for my primary residence?
No. DSCR loans are business-purpose loans for non-owner-occupied investment properties only.
Why do investors switch from conventional to DSCR?
Common reasons are reaching the cap on conventionally financed properties, wanting to hold rentals in an LLC, or having income that's hard to document on paper.
Can I refinance a conventional rental loan into a DSCR loan?
Often, yes — for example, to move a property into an LLC or to pull cash out based on the property's income. Call us to talk through your situation.
Does Moon Walk Fundings offer both?
We focus on business-purpose investor loans — DSCR, Fix & Flip, and Ground-Up Construction. We don't offer conventional owner-occupied mortgages, but we're happy to talk through whether DSCR fits your rental.
Related comparisons
Not sure which loan fits? Let's talk it through.
Talk to Janson Wade directly. No call centers, no runaround — just a real conversation about your deal and current terms.