Are Prepayment Penalties allowed on DSCR Loans in Alaska?

[Robin Simon]

Prepayment Penalties are Not Allowed on DSCR Loans in Alaska. Alaska Statutes § 45.45.010(g) explicitly states that loans secured by one-to-four family dwellings may be prepaid without a prepayment penalty, unless the loan is federally insured. Since DSCR Loans are not federally backed and there is no specific distinction between owner or tenant occupancy for one-to-four-unit properties, DSCR Lenders cannot offer prepayment penalty options in Alaska, except potentially for multifamily (5+ unit) or mixed-use properties.

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