DSCR vs Conventional Investment 2027

Compare DSCR loan vs conventional investment property loan 2027 — DSCR no income docs (just property cash flow), conventional uses personal income.

Ad Space

Loan Type Overview

Specialty loan programs serve borrowers who don't fit conventional underwriting. Higher rates but flexible qualification.

2027 Market

Non-QM market growing as W-2 employment shrinks (gig economy, freelance). Demand for flexible programs rising.

Underwriting Differences

Conventional: 2 yrs W-2, tax returns, DTI < 50%. Specialty: alternative docs (bank statements, assets, P&L), 25%+ down, higher rates.

Best Strategy

Negotiate rate down with 25-30% down. Larger down = lender risk reduced = lower rate. Build relationships with non-QM specialists.

Source: fanniemae.com Selling Guide B3-3.5, deephavenmortgage.com DSCR. Last updated: May 2026.