Hey everyone! Has anyone here gone through the application process for DSCR loans?

[Mary Holland]

I'd love to hear about your experiences and how they compare to other types of commercial real estate financing. Any tips or advice would be super helpful!

[Erik Estrada]

Hi Mary, 

It will depend on what kind of lender is doing the DSCR loan. If it is a private money/ commercial style lender, it is a relatively simple process. Most will require basic documentation such as a complete loan application, ID, Entity Docs, and 3rd party contact information. They usually collect all docs upfront and then underwrite once the appraisal is completed. Once approved the send to QC and the file is sent to closing.

If It is a wholesale DSCR lender that also does TRID loans, they might require a bit more paperwork, such as a VOM, mortgage statements for properties currently owned, and credit supplements on mortgages on your credit report. They do follow the traditional process where disclosures are sent out to the borrower. They will also accept conditions before the appraisal is done.

Each have their benefits and drawbacks. It is important to work with a broker that has access to both!