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.
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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.