DSCR Refinance with Cash Out

[Michelle Romano]

Hello - I have been reading posts about DSCR loans and prepayment penalties and have a question. To clarify, it is illegal for the lender to charge the investor a prepayment penalty in PA for $301K loan and undee even if the lender is not located in PA or do they both need to be in PA?

I am looking for a DSCR loan for a long term rental I have in PA with small cash out. The existing loan I obtained 6 yrs ago was a DSCR loan with a one year ARM - no prepayment penalty, that is coming due in October. I am getting quoted the 5/4/3/2/1 step down prepayment penalty. I have no intention of selling the property as it has great cash flow. Any lenders here that can assist. Thank you.