Loan Comparison
Investors hit a wall with conventional financing: personal debt-to-income ratios cap how many properties you can carry, no matter how profitable they are. DSCR loans solve that by qualifying on the rental income the property produces rather than your tax returns. Here is when each makes sense.
| DSCR Loan | Conventional Loan | |
|---|---|---|
| How you qualify | Property’s rent covers its debt payment (DSCR ratio) | Your personal income and debt-to-income ratio |
| Income documentation | None — no tax returns or W-2s | Two years of tax returns, W-2s, and paystubs |
| Property limit | Effectively unlimited | Generally capped around 10 financed properties |
| Down payment | Typically 20–25% | 15–25% for investment property |
| Rates | Modestly higher (Non-QM pricing) | Benchmark conforming pricing |
| Vesting | Can close in an LLC | Personal name required |
| Best for | Scaling portfolios, self-employed investors | First or second rental with strong W-2 income |
Buying your first rental with solid documented income? Conventional wins on rate. Scaling a portfolio, writing off heavily, or wanting to hold title in an LLC? DSCR removes the personal-income ceiling entirely and lets the property qualify itself. We price both on every investment file.
Still Deciding?
We'll price both programs with your actual numbers and show you the payment, cash to close, and long-term cost side by side — no credit pull required.
Questions
Most programs want a ratio of 1.0 or higher, meaning the rent covers the mortgage payment, taxes, insurance, and HOA. Some investors accept ratios slightly below 1.0 with a larger down payment or reserves.
No. There is no income or employment documentation and no debt-to-income calculation. Underwriting focuses on credit score, the property’s rental income, and your down payment.
Yes. Many investors finance Airbnb and VRBO properties this way, using either market rent or documented short-term rental history depending on the program.
About Us
CDL Mortgage Services Inc. is an independent, full-service mortgage company. Instead of pushing one bank’s products, we shop multiple wholesale lenders to secure the best loan at the best rate for every borrower.
Purchase, refinance, and home equity — all under one roof, focused on the best loans at the best rates.
Based at 6524 Lonetree Blvd, Rocklin, CA 95765 and licensed in California, Texas, Georgia, Tennessee, Oklahoma & Idaho.
Every file is handled start-to-finish by a licensed loan officer who knows your name and your goals.
Fully licensed and regulated, with award-winning lender partnerships and 35+ years serving borrowers.
Ready When You Are
One application, multiple wholesale lenders, and a licensed loan officer who explains the tradeoffs before you commit.