DSCRs will have slightly higher rates and they also carry prepayment penalties, which kick in if you sell OR refinance the property within x number of years; 3-5 years is common. 

The mortgage interest rates are more favorable and so are the terms (no prepayment penalty, as little as 3% down payment for a first time homebuyer, etc). 

DSCR loans carry Prepayment Penalties, so unless you are comfortable staying in a 9%+ rate for 5 years, I would suggest just going with a normal 20% down DSCR. 

Is there a pre-payment penalty?

This amount represents a reasonable estimate of the actual damages the owner may suffer due to delay, and the contractor agrees that this sum is not a penalty."

I am currently waiting on a rather large legal settlement to hopefully hurry up and get him his $16,000 or if we can find someone to go ahead and pay him off early (no prepayment penalty), which would be hopefully paid off sooner than later as well in exchange for a secured lien on the property plus repayment of the $16,000 plus interest short term.

@David MartoyanGreat question—it’s a challenging time for BRRRR, but there are still opportunities with the right approach.Prepayment Penalties: I plan to keep my BRRRRs for 5 years or more.

Prepayment penalties- usually 1-5 year terms.

It also puts your agent and lender in a tough spot where it could be a perceived "fraud for profit" and they could lose their license and face time/penalties if they knowingly cooperate.

With penalties and interest.