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Commercial Debt Structuring Model

DSCR Loan vs. Conventional Bank Mortgage

Compare asset-based Non-QM DSCR loans (zero personal tax returns, entity vesting, 14-day closing) against Conventional Commercial Bank Mortgages (strict W-2/tax return DTI, global cash flow covenants, 60-day close).

Deal Underwriting Inputs

$1,500,000
$12,500 / mo
35.0%
Taxes, insurance, management fee, maintenance reserves.
Non-QM DSCR Loan No Tax Returns
Max Loan Amount (75%–80% LTV) $1,125,000 1.21x DSCR • APPROVED
Closing Speed:14–21 Days
Down Payment:$375,000 (25%)
Annual Debt Service:$92,100 / yr
Net Annual Cash Flow:$5,400 / yr
Vesting:LLC / Corporate Name
Conventional Bank Loan Full Doc W-2
Max Loan Amount (70%–75% LTV) $1,050,000 1.35x Bank Hurdle Req.
Closing Speed:45–60+ Days
Down Payment:$450,000 (30%)
Annual Debt Service:$79,200 / yr
Net Annual Cash Flow:$18,300 / yr
Vesting:Personal Recourse / DTI

Key Underwriting & Qualification Differences

When to Choose DSCR:

Self-employed investors with tax deductions, buying under LLCs, scaling beyond the 10-property Fannie Mae limit, or needing fast 14-day closings to win competitive deals.

When to Choose Conventional:

High W-2 earners seeking lowest possible coupon interest rate (50–100 bps lower), with clean tax returns and willing to undergo 60-day underwriting and personal guarantees.

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