One of the most common scenarios that can have brokers, borrowers and lenders all pulling their hair out is the perfect deal progressing towards the closing table – until surprise, the appraiser determines the property is rural. Boom – a loan looking like a smooth and easy close is now ineligible. Proceeds are cut and you are left scrambling trying to find a solution. Rebutting an appraiser, shooting for an exception or desperately shopping the deal around are common responses to the dreaded rural designation for a DSCR Loan.

An extremely frustrating experience – especially because there is no clear definition of what makes a property rural! The same town, zip code, even neighborhood can be rural to one appraiser, suburban to another and sometimes even considered "urban" as a surprise! Further, many DSCR lenders don't do rural properties. Finding a top wholesale DSCR Lender that can reliably execute on DSCR Loans secured by rural properties is a top priority for every top-tier mortgage broker.

Easy Street Capital Rural DSCR Loans

Easy Street Capital's DSCR Loan program is defined by its flexibility and common-sense underwriting. But its also geared toward on-the-ground concerns for brokers and borrowers and creating a reliable and consistent experience. Under our standard series DSCR Loan Program we avoid the rural headaches by determining whether a property is rural upfront. We evaluate a property as rural or not based on the public USDA database, regardless of appraisal determination. This gives much needed certainty so the borrower can rely on the term sheet and the quoted terms. No need to sweat out the appraisal's determination weeks later – after going through the documentation demands, the underwriting process, and if it's a purchase, likely earnest money and other costs!

What's more – under our standard underwriting guidelines – a USDA rural determination is hardly a kiss of death! We have very rural-friendly DSCR eligibility and pricing. No negative pricing LLPA; simply LTV limits of 70% for Rural DSCR Acquisitions and Rate-Term Refinances and 65% for Rural DSCR Cash-Out Refinances! Hardly low leverage!

What's more – Easy Street Capital has additional loan programs as well. If a property is deemed rural by the USDA designation and suburban or urban by the Appraisal – it can likely still qualify under our Signature Series guidelines at Maximum leverage! That's right – 80% LTV for a Rural DSCR Loan for an Acquisition or Rate-Term Refinance (if rural on USDA but not appraisal) and 75% LTV for a Rural DSCR Cash-Out Refinance Loan too!

What about rural short term rental DSCR Loans? Surely, this rural flexibility can't work for STR Loans too? Wrong! These rural DSCR loan flexible options work on vacation rental loans as well – with Zero pricing penalty or further restrictions! Looking for a wholesale DSCR lending option for a rural vacation rental – maybe in a small and seasonal, but potentially lucrative vacation rental market that's hard to find DSCR options for? The solution is here – reliable and consistent rural DSCR Loans under our Signature Broker program!

Mortgage Broker DSCR Solutions: Solutions for Seemingly Unsolvable DSCR Loan Scenarios for 2024!

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Robin Simon

[email protected]

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Austin, Texas

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