Can I count the rent from the property I am buying?

Generally yes, in part, using the appraiser's rent schedule and a factor applied by the guidelines rather than the full gross rent. The specific treatment depends on the program and the lender.

Should I use conventional financing or a DSCR loan?

It depends on which constraint binds. If your documented income and debt ratios support the file, conventional financing is often less expensive. If personal income documentation or the number of financed properties is the obstacle, a DSCR loan may be the route. Comparing both on the same property is the only way to know.

Loan option

Rental property financing

Conventional financing is available for one- to four-unit investment property and is often the lower-cost route for investors whose personal income and debt ratios support the file.

Last updated 26 October 2026

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How it works

How rental property financing works

Conventional guidelines contemplate investment property directly. The loan is underwritten on your overall financial picture, including the rental income from the subject property and from any property you already own.

How much of the projected rental income counts toward qualifying is set by the guidelines, and lenders generally apply a vacancy and maintenance factor rather than counting gross rent. For a property you do not own yet, the appraiser's rent schedule is usually the starting point.

Investment property files typically require a larger down payment and more reserves than an owner-occupied purchase, and pricing differs. Agency guidelines also limit the number of financed properties a borrower may have, which is where many growing portfolios run into a ceiling and look at DSCR financing instead.

What to weigh up

Your personal debt-to-income ratio is part of the test here, unlike a DSCR loan.
Properties held in an LLC generally cannot be financed conventionally; conventional financing is to an individual.
Insurance and association dues on Florida investment property should be quoted early, because they affect both qualifying and actual returns.

Set by the lender, not by us

These vary between lenders and change over time. Nothing on this page is a quote, an approval, or a commitment to lend.

Minimum down payment and reserve requirements for investment occupancy
Maximum number of financed properties
Treatment of rental income from properties with a short ownership history
Overlays on property type, including condominium project requirements

Nothing on this page is a rate quote, an approval, or a commitment to lend. Figures and requirements change, and they depend on your file.

DSCR compared with conventional investment financing

Both finance a rental property. They differ in what the lender qualifies: the property's cash flow, or your personal financial picture.

DSCR compared with conventional investment financing
Factor	DSCR loan	Conventional investment loan
What qualifies the loan	The property's debt service coverage — rental income measured against debt service.	Your documented income and debt-to-income ratio, including rental income from the subject property.
Personal income documents	Generally not used to qualify.	Required — tax returns, and the agency calculation applied to them.
What is still underwritten	Credit, reserves, the property and its condition, the appraisal and its rent analysis, title, and the entity structure.	The full borrower and property picture, including everything you already own.
Holding title in an LLC	Often permitted, frequently with a personal guaranty. Lender-specific.	Generally not. Conventional financing is made to an individual.
Number of financed properties	Set by the lender, and often where investors turn when agency limits bind.	Agency guidelines cap the number of financed properties a borrower may have.
Prepayment penalty	Common. Structures vary, and this matters if you expect to sell or refinance.	Not typical.
Pricing	Non-agency, and generally priced differently from conventional financing.	Agency pricing, which is usually the lower-cost route when the file supports it.

What qualifies the loan

DSCR loan: The property's debt service coverage — rental income measured against debt service.
Conventional investment loan: Your documented income and debt-to-income ratio, including rental income from the subject property.

Personal income documents

DSCR loan: Generally not used to qualify.
Conventional investment loan: Required — tax returns, and the agency calculation applied to them.

What is still underwritten

DSCR loan: Credit, reserves, the property and its condition, the appraisal and its rent analysis, title, and the entity structure.
Conventional investment loan: The full borrower and property picture, including everything you already own.

Holding title in an LLC

DSCR loan: Often permitted, frequently with a personal guaranty. Lender-specific.
Conventional investment loan: Generally not. Conventional financing is made to an individual.

Number of financed properties

DSCR loan: Set by the lender, and often where investors turn when agency limits bind.
Conventional investment loan: Agency guidelines cap the number of financed properties a borrower may have.

Prepayment penalty

DSCR loan: Common. Structures vary, and this matters if you expect to sell or refinance.
Conventional investment loan: Not typical.

Pricing

DSCR loan: Non-agency, and generally priced differently from conventional financing.
Conventional investment loan: Agency pricing, which is usually the lower-cost route when the file supports it.

If your documented income and debt ratios support the file, conventional financing is often less expensive. A DSCR loan earns its cost when personal income documentation, or the number of properties you already finance, is the obstacle. Comparing both on the same property is the only way to know which applies to you.

Terms used on this page

Rent schedule: The appraiser's analysis of market rent for a property, used by lenders when qualifying investment property financing.Some lenders use market rent, some use the rent on an existing lease, and some use the lower of the two.
Debt-to-income ratio (DTI): Your monthly debt obligations measured against your gross monthly income. Lenders use it to assess capacity to repay.
Reserves: Funds you still hold after closing, usually expressed as a number of months of housing payments, which a lender requires as a cushion.Funds counted as reserves generally cannot also be counted as qualifying income under an asset depletion calculation.

See the full mortgage glossary

Questions about this program

Can I count the rent from the property I am buying?: Generally yes, in part, using the appraiser's rent schedule and a factor applied by the guidelines rather than the full gross rent. The specific treatment depends on the program and the lender.
Should I use conventional financing or a DSCR loan?: It depends on which constraint binds. If your documented income and debt ratios support the file, conventional financing is often less expensive. If personal income documentation or the number of financed properties is the obstacle, a DSCR loan may be the route. Comparing both on the same property is the only way to know.

Official sources

Program rules are set by these organizations and are updated periodically. Where this page and an official source disagree, the official source is correct.

Selling Guide (opens in a new tab) — Fannie Mae
Single-Family Seller/Servicer Guide (opens in a new tab) — Freddie Mac
Florida Office of Insurance Regulation (opens in a new tab) — State of Florida

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