Question 1

Can I use DSCR if I have a W-2 job?

Accepted Answer

Yes. DSCR doesn't forbid W-2 income; it just doesn't require it. If your business cash flow is stronger than your W-2, DSCR may qualify you for a larger loan. Talk to your lender about which program shows you in the best light.

Question 2

Do I need 20% down for a DSCR loan?

Accepted Answer

Most lenders require 20–25% down on DSCR loans. Some programs go as low as 15% for strong cash flow and credit. Conventional starts at 3%, so the down payment gap is real. Check with your lender on their specific floor.

Question 3

Which loan closes faster in Industry?

Accepted Answer

Conventional loans close faster because W-2 income is straightforward to verify. DSCR requires deeper review of business financials or rental history. Expect conventional to close in 21–30 days; DSCR in 30–45 days.

Question 4

Will PMI make conventional more expensive than DSCR?

Accepted Answer

Not always. Conventional PMI at 10% down costs roughly $150–$250 per month on a $400,000 loan. DSCR's 0.75% rate premium adds $225–$300 monthly on the same loan.

Question 5

What credit score do I need for each loan?

Accepted Answer

Conventional requires 620 FICO minimum; most lenders prefer 640+. DSCR typically starts at 640 FICO. Both programs offer better rates above 700. Industry buyers with solid credit qualify for either program.

Conventional vs DSCR Loans in Industry: Which Fits Your Purchase?