How I work a DSCR loan, from first numbers to closing

Stage 1: the four numbers

Every file starts with the same short list: the rent, the annual taxes, an insurance figure and any HOA dues. Add the property state, the type of property, what you want to do, and a rough value and loan amount. That is enough for me to give you a first read. No credit pull, no SSN, no documents yet.

Stage 2: the ratio, run conservatively

I build the full monthly payment and divide the rent into it. If you gave me an optimistic rent, I will also run the number an appraiser is more likely to support, so you can see both. If the ratio is tight, I show you which levers would move it: loan size, insurance, documented rent or loan structure.

If the deal does not work as a DSCR loan, I tell you here, before you have spent anything.

Stage 3: shopping wholesale lenders

This is the broker part. Wholesale DSCR lenders differ on the minimum ratio, short-term rental income, entity vesting, property types, unit counts, reserves and prepayment options. I match your file to the lenders whose guidelines fit it, and I compare their options side by side. Then I tell you which one I would pick and why.

Stage 4: the formal application

Once you choose a direction, we start the actual application. This is when credit is pulled with your authorization and when sensitive details are collected through a secure process. You will receive the required disclosures in writing. The documents checklist on this site tells you what to gather.

Stage 5: appraisal, underwriting and title

The lender orders the appraisal, which on most rentals includes a market rent estimate. Underwriting reviews the file, title clears the property and insurance is bound in the right name. The Loan Daddy team keeps the file moving and tells you what is outstanding. I do not promise a closing date up front, because too much of the timeline belongs to third parties.

Stage 6: closing, and the next one

You sign, the loan funds through the wholesale lender, and you own (or keep) a rental that pays for itself. Most of the investors I work with are planning the next property before this one closes. When you are ready, we start again at stage one.