Best DSCR Lenders Personal References

Private Lending & Conventional Mortgage Advice
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Best DSCR Lenders Personal References

Andrew Self
Real Estate Agent · Nashville, TN · Member since 2024 · 37 posts · 25 votes

Hello everybody. I'm looking at properties in Kentucky and Tennessee currently for LTR. I am looking to compare DSCR and conventional loan rates to see where I can get the best deal overall. My max purchase price will be $400,000, my FICO score is around 720 and Experian VantageScore is around 760. I am married as well and her scores are around the same as mine. I do have a mortgage currently in my name that I am in the process of having assumed, so currently my DTI is very high because of this. So, we will likely either do the DSCR route or conventional route in only her name. We have 20% to put down up to this price. Looking for recommendations from people who have personally used a specific lender and had good experience. Thanks in advance

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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
1y
Quote from @Andrew Self:

Hello everybody. I'm looking at properties in Kentucky and Tennessee currently for LTR. I am looking to compare DSCR and conventional loan rates to see where I can get the best deal overall. My max purchase price will be $400,000, my FICO score is around 720 and Experian VantageScore is around 760. I am married as well and her scores are around the same as mine. I do have a mortgage currently in my name that I am in the process of having assumed, so currently my DTI is very high because of this. So, we will likely either do the DSCR route or conventional route in only her name. We have 20% to put down up to this price. Looking for recommendations from people who have personally used a specific lender and had good experience. Thanks in advance


 Hi Andrew, 

You will generally have better terms going the conventional route. There are no pre payment  penalties on a conventional loan and when looking at the total finance charges, conventional is the way to go if you can qualify. 

IF you don't qualify for a conventional loan then I would suggest looking for a DSCR loan. The rate will be slightly higher depending on the leverage and PPP. You are also able to close in an LLC/Corp with a DSCR loan.

[email protected]818-269-7983
LuxePrivate Investments LLC 570 Reviews
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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Andrew Self:

    Hello everybody. I'm looking at properties in Kentucky and Tennessee currently for LTR. I am looking to compare DSCR and conventional loan rates to see where I can get the best deal overall. My max purchase price will be $400,000, my FICO score is around 720 and Experian VantageScore is around 760. I am married as well and her scores are around the same as mine. I do have a mortgage currently in my name that I am in the process of having assumed, so currently my DTI is very high because of this. So, we will likely either do the DSCR route or conventional route in only her name. We have 20% to put down up to this price. Looking for recommendations from people who have personally used a specific lender and had good experience. Thanks in advance


     Hi Andrew, 

    You will generally have better terms going the conventional route. There are no pre payment  penalties on a conventional loan and when looking at the total finance charges, conventional is the way to go if you can qualify. 

    IF you don't qualify for a conventional loan then I would suggest looking for a DSCR loan. The rate will be slightly higher depending on the leverage and PPP. You are also able to close in an LLC/Corp with a DSCR loan.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 570 Reviews
    WebsiteView Page
    2Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y

    Check with your local credit union.

    1Reply
    • Jim Bob
      Member since 2022 · 72 posts · 9 votes
      1mo

      Several local to me credit unions refuse investment or vacation homes.

      0Reply
  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 692 posts · 237 votes
    1y

    Hey Andrew! In almost all cases when investors first come to us we say utilize the conventional route as much as you can.  I might have a biased opinion, a lot of those we've worked with though would say good things haha feel free to reach out if you have any questions on those differences or what that might look like for you.

    [email protected]734-645-7722
    Gold Star Mortgage Financial Group547 Reviews
    WebsiteView Page
    0Reply
  • Ko KashiwagiPro Member
    Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
    1y

    Hi Andrew,

    What does your and your partner's income look like? You might be able to structure it to still qualify for conventional loans. For example, if your partner has income and no debt, perhaps you can invest through her, or if it makes sense to combine your income with her that might still get you below 50% DTI. Best to check and see first.

    Most DSCR loans go off of the middle score so it'd be good to get a soft pull as I've seen scores come in way off from those apps sometimes. You can find a lot of. lenders through the "find a lender" tab above!

    310-848-9776
    0Reply
  • Rob Bergeron
    Real Estate Agent · Louisville, KY · Member since 2017 · 1k+ posts · 1k+ votes
    1y

    My dudes the best, hit my up with your email and I'll make an intro! 

    0Reply
  • Rich Cormier
    Lender · GA · Member since 2025 · 5 posts · 2 votes
    1y

    If you can qualify conventional, best to go that route for sure. Check with your bank you use most and keep them honest with another bank. May check credit union too if you have access to any like fire/ police, vets, etc if you qualify :)

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    1y

    @Andrew Self I would like to think that my company is the best and offers the lowest rates and closing costs, but perhaps I am bias. Do shop around though and see what you find! Feel free to reach out with any questions. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5119 Reviews
    WebsiteView Page
    0Reply
  • Andrew Zamboroski
    Lender · Member since 2021 · 500 posts · 131 votes
    1y
    Quote from @Andrew Self:

    Hello everybody. I'm looking at properties in Kentucky and Tennessee currently for LTR. I am looking to compare DSCR and conventional loan rates to see where I can get the best deal overall. My max purchase price will be $400,000, my FICO score is around 720 and Experian VantageScore is around 760. I am married as well and her scores are around the same as mine. I do have a mortgage currently in my name that I am in the process of having assumed, so currently my DTI is very high because of this. So, we will likely either do the DSCR route or conventional route in only her name. We have 20% to put down up to this price. Looking for recommendations from people who have personally used a specific lender and had good experience. Thanks in advance

    The biggest difference between conventional and DSCR is like prepayment penalty and costs (higher on DSCR loans). If you can make a conventional loan work, it’s likely a better option. Try a local mortgage broker who can likely even run an income scenario for you.

    If not, there would be many DSCR folks like ourselves that would be happy to help. The 250k+ loan amount is usually a sweet spot in pricing. 

    cheers!
    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    BiggerPockets should have a list of recommended DSCR lenders that you can reference!

    1Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    Hey @Andrew Self unfortunately, Bigger Pockets doesn't have a way to sort lenders by # of BP references or google reviews but I highly encourage you to research ours. You can also check out what 80% LTV pricing would look like on this potential deal using the link to our pricing engine in my bio on my BP profile.

    [email protected]818-606-8823
    Investor Property Loan5307 Reviews
    WebsiteView Page
    0Reply
  • Adam Summerer
    Lender · Franklin, TN · Member since 2026 · 127 posts · 36 votes
    1mo

    If her DTI alone clears conventional at 20% down, that usually beats DSCR on total cost (no prepay penalty, better rate). Run the conventional scenario in her name first with the assumption paperwork in motion so DTI isn't fictional. If conventional still dies on DTI, there are DSCR lenders who'll go to ~80% LTV on 1–4s with mid-600s FICO and rent-based quals — just price the prepay and compare cash-to-close, not only rate. Soft-pull a couple DSCR quotes the same week as the conventional LE so the apples-to-apples is real for KY/TN.

    0Reply
  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    1mo

    Adam,

    If you have a 720 Fico or above you should be using a Portfolio Loan program to obtain funding on an Investment property with as little as 10% Down. That program also allows for a higher DTI back end of 52. That is for single family, townhome or Condo's if its a 2-4 unit it would be 15% down. If you ever have any specific questions feel free to reach out I enjoy helping other Bigger Pocket members use loopholes and Network to build their REI with less money out of pocket to save more money and time!

    [email protected]727-637-4289
    0Reply
  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 526 votes
    1mo

    DSCR loans will not consider debt to income ratios so that could be the way to go. Guidelines are very similar for conventional as the loans are underwritten by AUS (Automated Underwriting System) which is an algorithm. If the lender has overlays or additional restrictions those will be in addition to what AUS gives.

    DSCR loans are not underwritten this way so there can be more variation between program guidelines that mortgage brokers and lenders have access to. They may have some similar guidelines to conventional loans but individual companies set their own DSCR program guidelines. Since DSCR loans are underwritten based on the borrower's middle mortgage FICO score, LTV and actual or projected property rents, they can be easier to qualify for especially if there are debt to income ratio issues. Happy to connect to discuss further.

    [email protected]818-770-0340
    Bright Skyline518 Reviews
    WebsiteView Page
    0Reply
  • Pierre Guirguis
    Lender · Marlboro, NJ · Member since 2025 · 243 posts · 150 votes
    1mo

    Andrew, you're in a pretty good position to compare both options. I work primarily with investor/DSCR financing, so I'm coming at this from the lending side rather than as a borrower.

    With ~720 FICO and 20% down, you should have plenty of DSCR options to look at. Given the existing mortgage and current DTI, DSCR could also make the qualification side much cleaner since we're primarily underwriting the property's rental income rather than your personal DTI.

    That said, I wouldn't automatically choose DSCR over conventional. If your wife can qualify individually, and the conventional terms are meaningfully better, it's worth comparing the two side-by-side - rates, points/fees, prepayment penalty, reserves, and cash to close - rather than just comparing the two headline rates.

    Happy to run a DSCR scenario on a property you're considering so you have real numbers to compare against the conventional option.

    0Reply
  • Brian Bowman
    Lender · Nationwide · Member since 2025 · 19 posts · 2 votes
    1w

    Late to this one, but for anyone landing here looking for DSCR lenders, here's how I'd think about this exact situation.

    The real question isn't which lender, it's which structure. With 20% down, 720s credit and DTI tied up by the assumption, there are three paths:

    1. Conventional in your wife's name only. Usually the best pricing and no prepay, but it's full documentation, her income has to carry everything, and it caps how many financed properties she can hold. You also can't hold the property in an LLC which make it so the loan doesn't show up on credit and helps to mitigate liability in the event that you get sued. Holding investment properties in your personal name opens your personal assets to all litigation - I don't advise it.

    2. DSCR. Qualifies on the property's rent, not your DTI, so the assumption doesn't matter.

    3. A mix. Conventional on the first one while her DTI is clean, DSCR on everything after.

    And DSCR lenders are not all the same. Some count market or actual rent (whichever is less), some only market, some actual up to 20% over market, and a few will use 100% of actual. Prepay options and how they treat HOA, flood and insurance vary just as much. Same borrower, same property, very different loans.

    That's why I'd look for someone who can shop a lot of lenders and actually diagnose the deal, not a single-lender loan officer working for a bank with only 1 program that may not fit your needs.

    Disclosure: I'm a DSCR/hard money broker with DSCR Kings.

    0Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
    2d

    @Andrew Self others have already provided good info. I got a guy/company that I have done a lot of DSCRs with. I like them just because it all gets done really pretty quickly and smoothly with good communication. DM me.

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    0Reply
  • Timothy Hero
    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    22h

    I've brokered nearly 500 DSCR loans, so "favorite" can range. Some have easier underwriting, but higher rates. Some have the best rates, but 5 weeks to close.

    It really depends on what you're aiming for.

    0Reply
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