DSCR Loans-How long do they take to close?

Question

Can anyone share how long it took to close? Any experience worth sharing?

Kristen L Garner · Answer

Hi Mario,  I see an average of 30 days to close a DSCR loan.  The largest determining factor is the speed of the appraiser.  I've closed as quick as 20 days with a quick report submission and I've had some files take closer to 45 days if the property is extremely rural, unique, or hard to find an appraiser for.

Ned Carey · Answer

@Mario Morales it depends on the particular lender, Appraiser, title company and geographocal location. We had one take 6 months and the rates changed two times due to the lenders own delays.

Caroline Gerardo · Answer

20 to 30 days.

15 IF You supply everything upfront: full application 1003, mortgage bill last month showing paid as agreed, all insurance bills not the policies, your bank statements past 2 months for reserves, lease agreement for subject, comparables for subject, purchase contract if purchase or just fire insurance and any HOA documents (Certification/Master policy/HO6), you have no loan modifications on credit or in closet, pay for appraisal fast with credit card and they get inside the next day, no funky clouds on title, no soon to be partners or LLC not documented, proof of deposit check or rent check at closing. Listen to questions Loan Officer asks, if they are great they will guide you to close fast. If they are a call center or new, run.

Eliott Elias · Answer

I’ve closed them in two weeks. Account for 30 days at most.

Erik Estrada · Answer

It depends how clean the file is. Most take 30 days, but if you have a great FICO, experience, property is permitted, entity is organized, market value, and rental value is there, 14 day close is possible.

But the more dirt there is, the longer it will take

Juan Lara · Answer

Depending on the lender it can take from 20 to 45 days.

Doug Smith · Answer

I've gotten this question a lot over the years...about all types of loans...and the answer is the same. "It depends on the borrower". We have deals that absolutely fly through the system and we have deals that stall. Up front, we prepare a detailed laundry list of items that we need from the borrower...bank statements, schedule of experience, etc. If the borrower quickly provides us with what we need, we usually see closing within 30 days. If on the other hand the borrower provides us with poor documentation, then it really stretches it out. I really does mostly depend on the cooperativeness of the borrower.

Chris Seveney · Answer

@Mario Morales

Since people provided timelines what I will add is make sure to have all your information ready and available upfront on what they need. If you send it in pieces sometimes that can slow things down as stuff does get “lost in email”…

Also communication and staying on the lender during this phase to confirm they have what they need. It’s not uncommon last minute questions / clarifications info to be needed.

DSCR Loans-How long do they take to close?

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