DSCR Loan vs Conventional Investment Property Calculator
Compare a DSCR portfolio loan against a Fannie/Freddie conventional loan for investment property. Models rate, LTV, monthly P&I, cash-on-cash, qualification path.
| NOI (Rent - Opex) | — |
| Conventional Down Payment + P&I | — |
| DSCR Down Payment + P&I | — |
| Conventional DSCR Ratio (NOI ÷ P&I) | — |
| DSCR Loan DSCR Ratio (typically need ≥1.1-1.25) | — |
| Conventional Annual Cash Flow | — |
| DSCR Annual Cash Flow | — |
| Conventional CoC % vs DSCR CoC % | — |
DSCR (Debt Service Coverage Ratio) loans qualify based on the property's rental income (not borrower income). Conventional Fannie/Freddie investor loans qualify based on borrower DTI and require tax returns. 2027 typical rates: Conventional 7.5-8.0%, DSCR 8.5-10.0%. DSCR has no seasoning, higher LTV flexibility, easier scaling. Conventional offers cheaper rate but harder to qualify after 4-10 properties. Source: Fannie Mae 2026-12, AAPL DSCR Survey 2026 Q1.
How DSCR and Conventional Loans Differ
DSCR loans qualify the property: divide NOI by proposed annual P&I — needs 1.0 to 1.25+ DSCR. No tax returns. No DTI. No personal income verification. Conventional Fannie/Freddie loans qualify the borrower: 2 years tax returns, DTI under 45%, FICO 680+. Conventional has a 10-property limit per borrower (Fannie 7-10). DSCR has no per-borrower limit, scales infinitely.
2027 Rate and Cost Comparison
Conventional Investor: 7.5-8.0% rate, 25% down, 0.5-1.5 points, ~$2-3k closing. DSCR Portfolio: 8.5-10.0% rate, 20-25% down, 1-3 points, $3-6k closing + 1.5-3% origination fee. DSCR costs more upfront and monthly but bypasses W-2 qualification. Many BRRRR scalers pay the premium to keep velocity.
When to Choose Each Loan Type
Choose Conventional: stable W-2 income, fewer than 10 properties, can wait 6-month seasoning, lowest monthly cost critical. Choose DSCR: self-employed, scaling beyond 10 properties, foreign national, no W-2, need fast close, BRRRR with no seasoning. Hybrid approach common: conventional for first 4-7 properties, DSCR after.
Last updated May 2026. Sources: Fannie Mae Selling Guide 2026-12, AAPL DSCR Lending Survey 2026 Q1.