Long-term rental that cash-flows → DSCR. Documentable income, lowest rate, under the property cap → conventional. Primary or personal-cash-flow deal → bank statement. Flip or quick close → hard money, then refi to DSCR. See Eligibility.
The side-by-side
| Program | Qualifies on | Term | Best for |
|---|---|---|---|
| DSCR | Property rent | Long-term (30/40 yr) | Buy-and-hold rentals |
| Conventional Investment | Your income + DTI | Long-term | Documentable income, lowest rate |
| Bank Statement | Your deposits | Long-term | Self-employed; primary or rental |
| Hard Money | The asset (LTV) | Short-term bridge | Flips, fast closes, rehab |
Head-to-head matchups
DSCR vs Conventional Investment
Conventional wins on rate if you document income and are under the ~10-property cap. DSCR wins on access & scale — qualify on rent, vest in an LLC, no property cap. See the trade-off →
DSCR vs Bank Statement
Both skip tax returns. DSCR uses the property's rent (investment only); bank statement uses your deposits (and can buy a primary). Thin cash flow or a primary → bank statement.
DSCR vs Hard Money
Different jobs. Hard money is a short-term bridge for flips/rehab at higher cost; DSCR is the long-term hold. Common play: buy/renovate with hard money, then refinance into DSCR.
The decision framework
Answer top to bottom — first match is usually your loan:
Is it a short-term flip or rehab?
→ Hard money (or fix-and-flip) now, refi to DSCR later.
Will you live in it?
→ Bank statement or conventional — DSCR is investment-only.
Can you document income, want the lowest rate, under the property cap?
Long-term rental that cash-flows, scaling or want LLC vesting?
→ DSCR.
DSCR comparison FAQs
DSCR vs conventional investment?
Conventional if you document income, want lowest rate, under the cap; DSCR to qualify on rent, LLC vesting, or scale past it.
DSCR vs bank statement?
DSCR uses property rent (investment only); bank statement uses your deposits (can buy a primary).
DSCR vs hard money?
Hard money = short-term bridge for flips; DSCR = long-term hold. Often buy with hard money, refi to DSCR.
When is DSCR the clear winner?
Scaling a rental portfolio, LLC vesting, no income docs, fast close — and the property cash-flows.
How do I decide?
Start with strategy and timeline; we confirm the cheapest fit for each stage.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.