Buying a rental: DSCR
or conventional?
One underwrites you. The other underwrites the property. Pick the one that looks better on paper.
By Dawn M. Muñoz · Stonehaven Lending · Updated August 13, 2026
Conventional qualifies you on income and DTI; each property tightens the ratio. DSCR qualifies on rent against payment, usually without income documents. Self-employed and portfolio investors land DSCR; W-2 first-rental buyers often do better conventionally. We arrange both.
Who gets underwritten
Conventional underwrites you: income, DTI, tax returns. DSCR asks whether rent covers the payment. Credit and reserves still matter; your paycheck doesn't.
The W-2 first-rental case
Strong income, clean DTI, one or two properties: conventional is usually the cheaper route. If the new mortgage fits your ratios, take it.
The investor case
Self-employed with optimized returns. A portfolio past conventional's limits. An LLC-held property. A short-term rental with documented income. DSCR was built for these files. Run yours in the DSCR calculator.
How we actually advise it
Your ratios on one side, the property's coverage on the other. Sometimes it's conventional now, DSCR from property three on.
Get the comparison
Share the property and your file. A specialist replies within one business day.
Prepare the next decision
Our first DSCR loan guide separates qualifying rent from real cash flow and explains what to prepare as a new landlord. It includes a refinance example with less cash available than expected.