DSCR - "Do Not Report to Peronal Credit"
Bigger Pockets members & Investor's make sure you do your due diligence and learn or ask about Non/QM & DSCR programs when buying an investment property rental. One question I get a lot is "Will the DSCR mortgage report to my personal credit"? I have heard stories about a lender or loan officer not knowing this answer and it hurts the buyer/investor and ends up reporting to their credit. This (DSCR) program is a business purpose loan. You need to have the correct info up front and if your lender tells you that "Yes" it must report to your credit then walk away.
You can close the loan in an LLC and it does "Not" have to report to credit. Please, also be careful and read your "LE" loan estimates make sure they are completely filled out and not just trying to show you a "Teaser Rate" meaning (Not locked) and not disclosing the Points, Broker fee's, origination totals and Most importantly rates are going down avoid a (5 Year Prepay) that most lenders tend to choose or not talk about up front!
You do not need a 5 year prepay in most cases for a lower rate, use a 'Seller credit" to buy it down or look at a 3/1, 5/1 or 7/1 ARM even I/O interest only to help increase initial cash flow. Then refinance on the ARV and get into a 30YR Fixed or other term. When you have questions feel free to reach out to the experts its better to have the knowledge prior to the mistakes and use preventive maintenance.