https://blog.cfcdscr.com/tags/conventional-loan/Recent content in Conventional Loan on Coastal Funding DSCR BlogHugoen-usThu, 22 Oct 2026 13:20:00 -0500https://blog.cfcdscr.com/posts/dscr-vs-bank-statement-loan/Thu, 22 Oct 2026 13:20:00 -0500https://blog.cfcdscr.com/posts/dscr-vs-bank-statement-loan/<p><strong>The main difference: a DSCR loan qualifies on the property&rsquo;s rent, a bank statement loan qualifies on your income from bank deposits, and a conventional loan qualifies on your tax returns and debt-to-income ratio. If your tax returns tell the full story, conventional often costs less. If they don&rsquo;t, DSCR or bank statement loans can fill the gap.</strong></p> <h2 id="key-takeaways">Key Takeaways</h2> <ul> <li><strong>DSCR loan:</strong> The property&rsquo;s rent ÷ PITIA. No personal income docs.</li> <li><strong>Bank statement loan:</strong> Income from 12 to 24 months of bank deposits. Still uses debt-to-income (DTI).</li> <li><strong>Conventional investment loan:</strong> Tax returns, W-2s, and DTI. Often the lowest cost when you qualify.</li> <li>Fannie Mae caps borrowers at <strong>10 financed properties</strong> for investment purchases.</li> <li>Many investors use <strong>more than one type</strong> as their portfolio grows.</li> </ul> <h2 id="how-does-each-investor-loan-qualify-you">How Does Each Investor Loan Qualify You?</h2> <h3 id="dscr-loan">DSCR loan</h3> <p>A <strong>DSCR (debt service coverage ratio) loan</strong> asks one question: does the rent cover the payment? The lender divides monthly rent by monthly PITIA (principal, interest, taxes, insurance, and association dues). Walk through the math in <a href="https://blog.cfcdscr.com/posts/how-to-calculate-dscr/">How to Calculate DSCR</a>.</p>