Which financing path is right for your next property?

As a real estate investor, you have more financing options than ever — but knowing which one to choose can be overwhelming.

Should you go the traditional route, with a full-doc investment loan?
Or use a DSCR loan, where the property qualifies based on cash flow alone?

👉 The answer depends on your goals, your income profile, and how fast you want to scale.

Let’s break down the differences between DSCR loans and conventional investment mortgages — so you can make the smartest move for your next deal.

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✅ What’s the Main Difference?

Feature	DSCR Loan	Traditional Investment Loan
Income required	None (property qualifies)	Personal income docs required
Documentation	No W-2s, no tax returns	W-2s, 1040s, pay stubs, full DTI calc
Credit score	620+ (680+ ideal)	640–700+ (stricter at higher LTV)
Down payment	20–25%	15–20% (may vary)
Property types	SFR, 2–4 units, Airbnb, STR	SFR, 2–4 units (no STR in most cases)
Speed of close	Faster (less paperwork)	Slower (more underwriting)
Best for	Full-time investors, self-employed	High W-2 income, fewer properties

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🧠 When to Use a DSCR Loan

DSCR loans make sense when:

• You don’t want to use (or don’t qualify with) personal income
• You’re building or scaling a portfolio
• You own multiple properties already
• You’re buying a short-term rental (Airbnb/VRBO)
• You want less paperwork and a faster closing

💬 If the property cash flows, you can qualify — even if your tax return says otherwise.

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💼 When to Use a Traditional Investment Loan

Conventional financing might be better if:

• You have strong W-2 income
• You want to maximize leverage (lower down payment)
• You’re buying your first or second property
• You’re aiming for the lowest possible rate

Just know: traditional lenders may limit your property count, require reserves, and request full documentation on every property you own.

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💰 Rates and Terms: What’s the Tradeoff?

• DSCR loans: Slightly higher interest rates (but less hassle and no MI)
• Traditional loans: Lower rates (if you qualify) but more restrictive

💡 For cash flow–focused investors, DSCR wins because the monthly net is still strong — even with a slightly higher rate.

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🧾 DSCR Loan Benefits at a Glance

✅ Qualify with rental income only
✅ No job, no employer, no personal income needed
✅ Available for Airbnb and short-term rentals
✅ Scalable — use for property #1 or property #20
✅ Fast closings with fewer hoops

We’ll help you compare both side by side before you lock anything in.

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🏢 Why PRMI?

PRMI is a direct lender that offers both:

• Traditional investment loans and
• DSCR and other non-QM investor products

We help you:

• Understand your options
• Match the loan to the strategy
• Close with speed and clarity

Whether you’re new to investing or adding your tenth door — we’ve got you covered.

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👇 Want to Compare DSCR vs. Traditional Side by Side?

Let’s run the numbers on your next property — and help you decide what’s best for your goals.