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Conventional Loan

A non-government-backed mortgage that meets Fannie Mae or Freddie Mac (GSE) underwriting. Conventional investment property loans require full income documentation and tighter underwriting than DSCR.

Why it matters on a DSCR loan

If you have clean W-2 income, low DTI, and fewer than a handful of financed properties, conventional financing on a rental can price below DSCR — it's worth quoting both. The trade-off is documentation and friction: tax returns, employment verification, and DTI math that counts every financed property against you. Most investors migrate to DSCR once self-employment income, portfolio size, or DTI makes conventional underwriting impractical.

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Reviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).