Conventional vs DSCR in 2025

[Dmitriy Yeshin]

Conventional wisdom says that DSCR should be more risky and as a result, more expensive than conventional loans. Based on some online searching, it appears that the rate gap between conventional investment property loan and DSCR is pretty narrow at the moment. It is hard to say without going through the entire underwritting process and most lenders give a range for rates and costs.

Is that.....possible? Is conventional still cheaper than DSCR in 2025 if all else is equal? If the gap still exists, is it more narrow today than it was during the lower rate environment?

Thanks in advance.