Loan Comparison
DSCR vs Portfolio Loan
Standardized non-QM scale vs bank-held custom underwriting. Here’s the honest breakdown of where each one earns its keep.
Side-by-side: DSCR vs Portfolio Loan
| Factor | DSCR Loan | Portfolio Loan |
|---|---|---|
| Where the loan lives | Sold to non-QM secondary market (standardized investors) | Held on the originating bank's balance sheet |
| Underwriting guidelines | Published, repeatable, standardized non-QM matrix | Bank-discretionary — varies by institution and credit committee |
| Income documentation | None — property's rental income qualifies | Bank-specific — often full tax returns + globally-analyzed cash flow |
| Maximum LTV (investment) | Up to 80% | Typically 65-75% (bank-dependent) |
| Minimum credit score | 640 | Usually 680-720+ (bank-dependent) |
| LLC vesting | Allowed nationwide | Allowed (commercial-style title), bank-specific terms |
| Loan size limit | $100K - $3.5M per loan, unlimited properties | Often capped by bank's single-borrower exposure limit |
| Relationship requirement | None — open to any qualifying investor nationwide | Often requires existing deposit / business relationship with bank |
| Closing timeline | 15-21 days | 30-60 days (bank credit committee dependent) |
| Rate (typical, 2026) | Standardized non-QM investor pricing | Often higher than conventional, lower than DSCR — but variable |
| Scalability across portfolios | High — same product across all 46 lending states | Limited by single bank's exposure and footprint |
Choose DSCR if…
- You want predictable, published underwriting you can shop against
- You don't have an existing banking relationship and don't want to build one
- You need to scale across multiple states with the same product
- You want to vest in an LLC with no deposit requirement
- Speed matters — you need a 15-21 day close
- You'd rather skip tax returns and global cash flow analysis
Choose a Portfolio Loan if…
- You have a long-standing relationship with a community or commercial bank
- Your bank can match or beat DSCR on rate because of that relationship
- Your deal has unique characteristics (mixed-use, unusual collateral) the bank can custom-fit
- You're willing to keep deposit balances at the bank to earn pricing concessions
- You're comfortable with bank-discretionary underwriting and a 30-60 day timeline
- Your portfolio is concentrated in one geographic market the bank knows well
DSCR vs portfolio loan — FAQs
What is a portfolio loan?
A portfolio loan is a mortgage the originating bank keeps on its own balance sheet rather than selling to Fannie Mae, Freddie Mac, or non-QM aggregators. Because the bank takes the risk, it can write its own rules — but those rules vary widely by institution, and the loan is usually tied to a banking relationship.
Is a DSCR loan a portfolio loan?
No. DSCR loans are non-QM mortgages sold to standardized secondary-market investors against published underwriting guidelines. Portfolio loans are bank-held and bank-customized. The two products solve different problems — DSCR for repeatability and scale, portfolio for one-off custom deals.
Are portfolio loans cheaper than DSCR loans?
Sometimes, but not predictably. A bank with a strong relationship may match or beat DSCR pricing in exchange for deposits. A bank without that relationship will often price higher to cover its concentration risk. DSCR pricing is published and consistent — portfolio pricing is negotiated case-by-case.
Can I scale a real estate portfolio on portfolio loans?
Up to your bank's single-borrower exposure cap, yes. Beyond that, you'll need to spread relationships across multiple banks — which means re-explaining your deals each time. DSCR scales linearly: the 1st and the 50th loan use the same guidelines and the same process.
Which is faster — DSCR or a portfolio loan?
DSCR. TQL closes DSCR purchases in 15-21 days. Portfolio loans typically take 30-60 days because they route through a bank credit committee that meets weekly or bi-weekly. If your purchase contract has a tight contingency, DSCR is the safer call.
Want the scalable, predictable path?
TQL writes DSCR loans across 46 states against the same published matrix every time. Your first deal and your fiftieth deal use the same playbook.