I have strong W-2 income - should I still use a DSCR loan?

Often yes for investment property. DSCR is faster, closes in LLC, and has no DTI cap on financed properties. The rate premium over conventional is offset by these benefits at scale.

W-2 borrowers default to thinking conventional is always better, but for investment property the math often favors DSCR even with strong personal income. Reasons: (1) Conventional caps you at 10 financed properties total (Fannie Mae). DSCR has no cap. If you're scaling beyond a few rentals, DSCR becomes mandatory. (2) Conventional rolls all rental DTI into your borrower picture, which can disqualify you well before the 10-property cap. DSCR doesn't touch your personal DTI. (3) Conventional requires title in the borrower's name initially. DSCR closes in your LLC directly, simplifying liability and tax structure. (4) Conventional underwriting takes 30-45 days. DSCR clean files close in 14-30 days. For time-sensitive acquisitions, the speed matters. Trade-off: DSCR rate runs 1-2% above conventional investment rate. On a $400K loan, that's ~$300-700/month difference. Whether that premium is worth it depends on how many properties you plan to acquire and whether LLC closing matters to you. Many W-2 investors use conventional for the first 2-3 properties, then switch to DSCR as they approach cap or want LLC structure.