Summary Chart: Prepayment Penalty Rules for DSCR Loans by State

[Robin Simon]

Hi - I spent some time researching this a bunch last year and hopefully it can be a helpful resource for investors using DSCR Loans --> prepayment penalties can make a huge difference in rates and terms and mixups in whats allowed vs. whats not allowed in a specific state can really throw curveballs in deals in my experience. Hope it helps!

PS - if anyone has info that contradicts any of the findings, please share -- things are changing always and the rules and regulations are often vague, so if I missed anything I'd love to be updated!

[Stacy Raskin]

Helpful chart. This seems to vary by DSCR lender as one institutional DSCR lender will say no prepayment penalties at all and another DSCR institutional DSCR lender will say prepayment penalties but with restrictions such as with Ohio. It seems that the lender's legal department will dictate how they interpret the state guidelines.