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Investment Property · Comparison

Conventional vs. DSCR vs. Portfolio Investment Loans

Three ways to finance a rental. The right one depends on how you qualify and how many properties you hold.

MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
Quick Answer

Conventional: best rates, qualifies on your income, limited number of properties. DSCR: qualifies on rent, no income docs, great for the self-employed and scaling. Portfolio: flexible for larger/unique deals past conventional limits.

How they differ

Conventional rewards well-documented income with sharp rates but caps how many properties you can finance. DSCR ignores personal income and qualifies on the property’s cash flow. Portfolio loans keep their own guidelines, useful for unique properties or high-volume investors.

Choosing

W-2 buyer with a couple of rentals? Conventional. Self-employed or scaling fast? DSCR. Unusual property or beyond conventional limits? Portfolio. We’ll pick the path that maximizes leverage and cash flow.

FactorConventional / DSCR / Portfolio
Qualify onYour income / Rent (DSCR) / Flexible
Property limitCapped / High / High
RateSharpest / Slightly higher / Varies
Best forW-2 buyers / Self-employed & scaling / Unique/high-volume

Frequently asked questions

Which gives the best rate?

Conventional, for well-qualified borrowers. DSCR trades a small premium for income-free qualifying.

I own several rentals — what now?

DSCR or portfolio loans let you keep buying past conventional’s property-count limits.

Can I refinance into DSCR later?

Yes — many investors move properties to DSCR to simplify qualifying as their portfolio grows.

Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.

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