DSCR Lender recommendation

[Karthik Natarajan]

Hi 

I am in the process of purchasing a property in Omaha and evaluating DSCR loans for financing. Any lender recommendations for DSCR loans.

Are there any cons for DSCR loans apart from the higher interest rates.

thanks

karthik

[Brandon Beardt]

Quote from @Karthik Natarajan:

Hi 

I am in the process of purchasing a property in Omaha and evaluating DSCR loans for financing. Any lender recommendations for DSCR loans.

Are there any cons for DSCR loans apart from the higher interest rates.

thanks

karthik

 Hi Karthik,

There are tons of DSCR lenders here on BP that can help you out. Do some research on a few, read reviews, and see what they have to offer. As Erik mentioned, working with an investor focused broker will help you find different loan products that best fit your situation/scenario. I would even advise to shop around and see what options different brokers can get you, as different brokers work with different lenders whom have different guidelines, requirements, and pricing.

To answer you second question, one con that comes to mind are prepayment penalties. I'd say a standard prepayment penalty for DSCR is a 5 year declining penalty, however, there are many options to bring that down lower (with either an increase to rate or fee paid at closing) and some lenders even start their prepay penalty at 3 years.