CalculateRealEstateROI

Financing

Conventional vs DSCR loan — which to choose?

Conventional for first 1–10 properties (lowest rate); DSCR after that or for LLC vesting.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Conventional for first 1–10 properties (lowest rate); DSCR after that or for LLC vesting.

Expanded explanation

Conventional caps at 10 loans/borrower with full doc requirements. DSCR loans qualify on property cash flow with no income docs, allow LLC ownership, and have no cap. Cost: 50–150bps higher rate.

Examples

  • Conv 7.0% / 25% down vs DSCR 8.25% / 25% down on $250k rental.

More Financing questions