What is DSCR Lender Really Looking For On My Bank Statements?

[Burt L.]

In seeking a DSCR cash-out loan, I've learned that lenders want to see bank statements. I had thought DSCR's were only property based, but lenders I've just begun to contact are saying I need to provide bank statements. I asked why and was told that they are just needed to see that I don't have NSF on my statements. I didn't fall off a turnip truck just last night and strongly suspect there is more to it.

This has been a long rehab and I"ve seen interest rates essentially double. My DCR has fallen from 1.7 to 1.25 in the process. At a closing as it is, I will still have approx $350K in equity with taking $100K in cash back.

My cash position has been squeezed as the scope of work expanded, reducing cash on hand. I"m told that I can use the cash-out proceeds for my 6 months escrow, which would be covered a few times over. 

I"m thin on cash on bank statements from the rehab. What is a potential lender really looking for- and how much is low cash on hand going to hurt my lendability despite my equity/cash-out? I've got alot of personal funds  tied up in this property, even with a rehab loan. 

I really didn't think bank statements were a part of a DSCR loan, but it appears I'm dead wrong on this.

Thank you.