Conventional: document income, keep DTI in range, show reserves, put 20–25% down. DSCR: the property’s rent covers the payment (DSCR ≥ ~1.0–1.25), with credit and down payment — no personal-income docs.
The conventional path
Qualify on your income and DTI, including a portion of projected rent. You’ll document W-2s or self-employed income, show reserves, and meet credit and down-payment minimums.
The DSCR path
Qualify on the property itself: lenders compare market rent to the payment (the DSCR). A ratio around 1.0 or higher often works. No tax returns or DTI — ideal for self-employed investors or those with many properties.
Frequently asked questions
What DSCR do I need?
Many lenders want ~1.0 or higher (rent covers the payment); stronger ratios earn better pricing. Some allow below 1.0 with compensating factors.
Can I use projected rent to qualify?
Conventional counts a portion of market rent; DSCR uses market rent directly to size the loan.
Which path is easier for self-employed investors?
DSCR — it skips personal-income documentation and qualifies on the property’s cash flow.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.