Debt Service Coverage Ratio (DSCR) loans qualify based on rental income rather than personal income.
Popular mortgage loan option
DSCR Loans vs Conventional Loans: Which Mortgage Is Right for You?
Compare DSCR Loans and Conventional Loans side by side. See the key differences in credit requirements, down payments, rates, and more to find the best loan for your situation.
Feature-by-Feature Comparison
See how DSCR Loans and Conventional Loans stack up
| Feature | DSCR Loans | Conventional Loans |
|---|---|---|
| Down Payment | Varies by program | Varies by program |
| Credit Score | Program-specific minimum | Program-specific minimum |
| Loan Limits | Varies | Varies |
| Mortgage Insurance | Depends on LTV | Depends on LTV |
| Best For | Borrowers seeking dscr loans | Borrowers seeking conventional loans |
Which Loan Is Right for You?
Each loan type has ideal scenarios
The Bottom Line
Both DSCR Loans and Conventional Loans are excellent mortgage options, but they serve different borrower needs. The right choice depends on your credit score, down payment, income, and homeownership goals. An NMHL loan officer can analyze your specific situation and recommend the best program for you.
What Borrowers Say About NMHL
Real reviews from homeowners who found their perfect loan
Not Sure Which Loan Is Right for You?
Apply in minutes and our team will help you find the best fit
Frequently Asked Questions
Common questions about DSCR Loans vs Conventional Loans
Frequently Asked Questions
DSCR Loans and Conventional Loans serve different borrower needs. This comparison breaks down the key differences in eligibility, rates, and terms to help you choose the right mortgage.
The best option depends on your financial situation, credit score, and homeownership goals. NMHL loan officers can help you compare both options for your specific case.
This comparison is for informational purposes only and does not constitute financial advice. Rates, terms, and program availability are subject to change without notice and may vary based on creditworthiness, property type, loan amount, and other factors. Contact NMHL for current rates and personalized loan options. NMHL NMLS# 2557591. Equal Housing Lender.