Match the property to the product
Determine whether the property is a single-family rental, 2–4 unit property, 5–8 unit multifamily, short-term rental, or another investor property. DLM separates several DSCR structures because eligibility can differ.
Search the structure plus property type
Examples include DSCR lender rental property, 5-8 unit DSCR lender, short term rental DSCR lender, and DSCR cash out refinance [state].
Compare the DSCR calculation
Ask how rent is documented, what expenses are included, whether the lender uses actual or market rent, and what minimum DSCR is required. A lender’s definition can matter as much as the advertised rate.
Check borrower and title requirements
Many DSCR programs are designed for business-purpose investor loans and may require title in an LLC or other entity. Confirm experience, liquidity, reserve, credit, and entity requirements.
Verify prepayment and leverage
Compare maximum LTV, prepayment penalties, interest-only options, minimum loan size, cash-out rules, and whether short-term rentals or rural properties are eligible.