Side by side
| Conventional investor loan | DSCR loan | |
|---|---|---|
| Qualification | Personal income, tax returns, debt-to-income ratio | Property rent compared with full payment |
| Borrower | Usually individuals | Individuals or LLCs (with guarantees) |
| Number of properties | Limits on financed properties apply | Programs commonly serve investors with many rentals |
| Documentation | Full income documentation | Lease or market rent, entity documents, credit and reserves |
| Pricing | Often lower for borrowers who fit the box | Generally higher, reflecting the flexibility |
Who each option tends to fit
A conventional investment-property loan can be a good fit for a W-2 earner buying a first or second rental, with tax returns that clearly show enough income. It becomes harder as you grow: each new property adds to your debt-to-income ratio, rental income is often counted at a discount, and there are caps on financed properties. Conventional loans are also generally made to individuals rather than LLCs.
DSCR loans are built for the investor whose portfolio is growing, whose tax returns show heavy depreciation and write-offs, or who wants to hold property in an LLC. The trade-off is that DSCR pricing is generally higher than conventional pricing for a borrower who fits the conventional box. We do not publish pricing; it depends on the file.
Maryland considerations
Maryland investors often hold property in LLCs, which favors DSCR. See the Maryland LLC guide. High-priced counties such as Montgomery and Howard make the ratio harder to reach without a large down payment, which is where comparing carefully matters. Run the numbers in the DSCR calculator, and read DSCR vs. bank statement loans for the self-employed angle.
This site arranges business-purpose financing for non-owner-occupied property only. We do not arrange owner-occupied or primary-residence loans.
Questions Maryland investors ask
Is a DSCR loan or a conventional loan better for a Maryland rental?
Conventional loans can fit borrowers with strong, documented income and few properties. DSCR loans fit investors who want to qualify on rent, borrow in an LLC or keep growing a portfolio.
Can I close a conventional investor loan in my LLC?
Conventional loans are generally made to individuals. DSCR programs commonly lend to LLCs with personal guarantees.