1st Advantage MortgageDSCR loan closing costs typically include lender or origination fees, an appraisal that includes a rent schedule, title and attorney fees, prepaid items and escrows, and other third-party charges. The rate is only part of the cost, so also compare the prepayment penalty, reserves and lock terms. Ask for the details in writing before you lock.
We do not publish fee amounts. They depend on the lender, loan size and location. Ask for a written estimate on your scenario.
Where the money goes
| Cost | What it is |
|---|---|
| Lender or origination fees | Charges for processing and underwriting, sometimes quoted as points |
| Appraisal | Value and market rent, often with a rent schedule |
| Title and attorney fees | NC and SC closings run through an attorney |
| Prepaids and escrows | Insurance, taxes and interest collected at closing, and any escrow cushion |
| Credit report and other third-party fees | Credit, flood certification, recording and similar items |
| Entity costs | Costs of forming or updating an LLC, if applicable |
Ten questions to ask any DSCR lender
- What is the rate for my exact scenario, and for how many days is the lock?
- What are all lender fees, and is any of it in points?
- What is the prepayment penalty, and can I buy it down or out?
- What DSCR minimum applies to my file, and what happens if the appraisal rent comes in lower?
- How many months of reserves do I need, and what counts toward them?
- Is the loan fixed, adjustable or interest-only, and when does the payment change?
- Are taxes and insurance escrowed?
- What is the maximum LTV for my credit score and property type?
- Can the loan close in my LLC, and what documents are needed?
- What is the realistic closing timeline, and what could slow it down?
How to compare offers
Put each offer side by side with the same loan amount, term and lock. Compare the rate, total fees, prepayment penalty, escrows, reserves and monthly PITIA, then check the DSCR each one gives. For more on pricing see DSCR loan rates and costs.
Ready to run your numbers?
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Keep reading
- How to Calculate DSCR for a Rental Property (With a Worked Example)
- How to Improve a Low DSCR: 8 Practical Levers for Rental Investors
- DSCR Loan Documents Checklist for North Carolina and South Carolina Investors
- Buying a Rental Property in an LLC With a DSCR Loan in NC and SC
- DSCR Cash-Out Refinance in NC and SC: How Investors Pull Equity for the Next Deal
General information for investors, not legal, tax or lending advice. Programs and guidelines vary by lender and change. This is not a commitment to lend.
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Tell us about the property. A licensed 1st Advantage Mortgage team member follows up with you. There is no fee to ask and no credit pull to start.
- We compare specialist wholesale lenders instead of fitting you to one lender's menu
- Qualify on the property's rent, with no tax returns, W-2s or pay stubs on any program
- North Carolina and South Carolina investors, including first-time investors and LLC buyers
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