loan without impacting credit score/history (DSCR loan)

[Praveen Van]

Hello BPs, 
I am newbie here and have a question related to DSCR loan. I own multiple rentals (with conventional loan types) and its getting tougher for my next big rental ($2M property) which I am going to purchase through a partnership LLC. I heard about DSCR loan where it looks at the property rental income to purchase value ration and not your credit history. Is this true? Would this new DSCR loan be still reported/shown on all of the LLC partners credit history? I dont want it to be impacting all of our credit score.

Appreciate any response in advance. 

[Robin Simon]

Quote from @Praveen Van:

Hello BPs, 
I am newbie here and have a question related to DSCR loan. I own multiple rentals (with conventional loan types) and its getting tougher for my next big rental ($2M property) which I am going to purchase through a partnership LLC. I heard about DSCR loan where it looks at the property rental income to purchase value ration and not your credit history. Is this true? Would this new DSCR loan be still reported/shown on all of the LLC partners credit history? I dont want it to be impacting all of our credit score.

Appreciate any response in advance. 

Yes - DSCR Loans can go through LLCs and these will typically not be reported on personal credit (unless it goes 90+ delinquent if you are the personal guarantor). There is some repeated confusion around this topic because pretty much all of the main servicing companies that service DSCR Loans are prone to mistakes - and sometimes accidentally report it. However, if you have a good and responsive lender - if this happens to you, you can typically get it removed from the credit report pretty quickly/easily if the error occurs.