DSCR vs FHA
FHA loans are owner-occupant mortgages (3.5% down, low rates) on 1-4 unit primary residences — used for house-hacking. DSCR loans are pure investment-property mortgages (25% down, 7.5-9.5%) on non-owner-occupied rentals. The two serve completely different stages: FHA for house-hacking, DSCR for scaling beyond.
| DSCR | FHA | |
|---|---|---|
| Speed to close | DSCR: 21-35 day close. | FHA: 30-45 day close (and slower with FHA appraisal issues). |
| Cost | DSCR: 7.5-9.5%, 25% down. | FHA: 6.5-7%, 3.5% down + MIP for life of loan. |
| Qualifying | DSCR: property cash flow. | FHA: 580+ FICO, 3.5% down, owner-occupancy required at origination. |
| Best use case | DSCR: pure investment properties, especially 2nd+ deals after the FHA house-hack. | FHA: house-hacking 2-4 unit primary residences with 3.5% down. |
Which to use when.
FHA for your first property (house-hack a 2-4 unit). DSCR for the rentals you buy after moving out of the FHA property. They're sequential, not alternatives.
Frequently asked.
What's the difference between dscr and fha loans?
FHA loans are owner-occupant mortgages (3.5% down, low rates) on 1-4 unit primary residences — used for house-hacking. DSCR loans are pure investment-property mortgages (25% down, 7.5-9.5%) on non-owner-occupied rentals. The two serve completely different stages: FHA for house-hacking, DSCR for scaling beyond.
Which is cheaper — dscr or fha?
DSCR: 7.5-9.5%, 25% down. FHA: 6.5-7%, 3.5% down + MIP for life of loan.
Which closes faster?
DSCR: 21-35 day close. FHA: 30-45 day close (and slower with FHA appraisal issues).
When should I use dscr vs fha?
FHA for your first property (house-hack a 2-4 unit). DSCR for the rentals you buy after moving out of the FHA property. They're sequential, not alternatives.
More head-to-head.
The Weekly Deal Memo
One market memo, one off-market playbook, one tool review. Every Friday. Free.
No spam. Unsubscribe anytime.