DSCR Testimonials and Suggestions

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Doug SmithPro Member
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
7mo

DSCRs are now like belly buttons...everybody's got one. Pretty much ever lender on the planet can do it these days. Q) "How many DSCR lenders does it take to change a light bulb? A) One to actually do it, the rest of them to say "I'm better than that guy". Get ready for the "DM me" avalanche.

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  • Jeff Roth
    Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 466 posts · 257 votes
    7mo

    Hi Joey from Canton, Ohio-

    Congratulations on having a couple of paid off rental properties and you are interested in refinancing to pull money out to grow your portfolio with Debt Service Coverage Ratio (DSCR) loans. You asked for feedback from others experienced with DSCR loans and asked for recommendations.

    First, DSCR loans are great for investors as all you need is a decent credit score and cashflow and the loan is mostly underwritten on the property's income and not you personally. Most of the investors we work with in Michigan are using DSCR loans as rates are comparable to conventional rates for the most part but way less involved to get them.

    Our preferred lender in Michigan also covers Ohio. Send me a DM and I will share their contact info if interested.

    To Your Success

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    7mo
    Quote from @Joey Sylvester:

    Anyone have experience in securing DSCR loans? I have some properties that I own free and clear and would like to leverage my equity to grow my portfolio. I was just hoping to hear some recommendations as well as any lenders to stay clear of.


     Hey Joey, 

    I think the easiest way to have a hassle free loan process is to work with a mortgage broker. Going direct to retail, is a hit or miss. You might end up with a new loan officer that got their license a few months ago and is giving you the run around, even though they work for a reputable firm. 

    Alternatively you can get a seasoned LO that does not really give you the time of the day because they are working on 1000 other loans in their pipeline. 

    I am biased, but just based on my experience working with clients that started by shopping multiple retail firms, that is the feedback I have received from them. 

    Working with a reputable broker helps tremendously. 

    [email protected]818-269-7983
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  • Doug SmithPro Member
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    7mo

    DSCRs are now like belly buttons...everybody's got one. Pretty much ever lender on the planet can do it these days. Q) "How many DSCR lenders does it take to change a light bulb? A) One to actually do it, the rest of them to say "I'm better than that guy". Get ready for the "DM me" avalanche.

    2Reply
  • Jack SmithPro Member
    Rental Property Investor · Massillon, OH · Member since 2017 · 216 posts · 168 votes
    7mo

    Hi Joey, 

    If you can get to a Stark County Real Estate Investors Association event you will meet some local lenders and investors that are very fluent in DSCR's. I've done a number with local banks & we have plenty that are very friendly to investors. We have weekly events and our monthly meeting is the last Tuesday of every month at LaPizzaria in Jackson. In March we're having our annual Vendor Night as our monthly meeting, so there will be plenty there to talk to.

    Come out and meet us!  

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 513 votes
    7mo

    It's helpful to work with a mortgage broker that specializes in DSCR loans as there are wholesale lenders that work with mortgage brokers that often don't work directly with the public.

    Wholesale lenders are where lenders (banks or mortgage companies) work with mortgage brokers directly manage the loan application and process for borrowers. These lenders don't interact with the borrower directly, so wholesale lenders offer lower-overhead, competitive, and usually specialized loan products. There are wholesale lenders also don't all have the same DSCR loan program as they write their own loan guidelines.

    Also, all DSCR loan programs are not the same. They will vary based on rate, minimum DSCR needed, LTV for different credit scores among other factors.

    Working with a mortgage broker who specializes in DSCR loans can help get better underwriting guidelines as experienced ones work wth multiple lenders so that can help the investor to find the best loan program for rates, LTVs, loan products with DSCR (such as DSCR STR cash out or purchase loans).

    Often lenders that specialize in conventional loans don't have the best DSCR loan programs for various reasons. Sometimes the lenders don't have the right investor pool to buy the loans on the backend or they just have the appetite for risk.

    Also, DSCR loans are not regulated the same way as conventional loans. Loan terms such as rates and down payment can be changed all the way up until closing if the investor is working with the wrong DSCR lender or broker. Some of these DSCR lenders or brokers will say anything to get the investor started in the process and then change the terms to being less favorable further in the process because they legally can and the borrower is more likely to feel stuck at that point. It's important to work with a broker or lender that has a good reputation to avoid that.

    [email protected]818-770-0340
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  • Mike Whitman
    Member since 2019 · 41 posts · 22 votes
    7mo

    @Joey Sylvester I just closed on my first investment property at the beginning of the year. I went with DSCR loan and used@Stacy Raskin. At a minimum, spend some time on the phone with her. She is very knowledgeable in the DSCR space. She was great for me, patient, walked me through each step, answered all my beginner questions. 

    Others may have different opinions, but one thing I would say is if you lever with a DSCR loan, you won't always have a conventional lender like a bank. I ended up with a financing company who has already sold the loan. If you're looking to build a relationship, you're building it with the broker who gets to know you and what you're goals are. If you prefer to walk into the bank and have coffee with the loan officer, then more conventional lending may be the way to go.

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    • Stacy RaskinBusiness Member
      Lender · Member since 2022 · 1k+ posts · 513 votes
      7mo
      Quote from @Mike Whitman:

      @Joey Sylvester I just closed on my first investment property at the beginning of the year. I went with DSCR loan and used@Stacy Raskin. At a minimum, spend some time on the phone with her. She is very knowledgeable in the DSCR space. She was great for me, patient, walked me through each step, answered all my beginner questions. 

      Others may have different opinions, but one thing I would say is if you lever with a DSCR loan, you won't always have a conventional lender like a bank. I ended up with a financing company who has already sold the loan. If you're looking to build a relationship, you're building it with the broker who gets to know you and what you're goals are. If you prefer to walk into the bank and have coffee with the loan officer, then more conventional lending may be the way to go.

       Thank you @Mike Whitman. It was great working with you. 

      [email protected]818-770-0340
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  • Michael Wyatt
    Lender · Boston, MA · Member since 2021 · 125 posts · 64 votes
    7mo

    Hey Joey, I would gather a bunch of quotes. In general the DSCR underwriting process is pretty similar across the board vs fix and flip loan programs that can vary wildly. 99% of DSCR lenders are selling the note after anyways so it's really finding someone you like to work with and able to get you the best deal.

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  • Frankie VozziBusiness Member
    Member since 2025 · 369 posts · 90 votes
    7mo

    Hey Joey! yes, DSCR loans are a great way to leverage equity and grow a portfolio, especially when you own properties free and clear. A few tips from investors who have done it successfully:

    • Look for lenders that underwrite based on property cash flow (DSCR), not just personal income that’s what makes this product work.

    • Make sure the rents you’re using are market-supported or contracted — conservative rent assumptions make approvals smoother.

    • Be mindful of lender minimums and fees; some lenders have high balance minimums or limited flexibility.

    • I hope this helped, I sent you a DM

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