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Are Prepayment Penalties Allowed on DSCR Loans in Indian?
#1 Private Lending & Conventional Mortgage Advice Contributor
- Lender
- Austin, TX
Prepayment Penalty Rules for DSCR Loans in Indiana
Prepayment Penalties are Fully Allowed with no restrictions for DSCR Loans in Indiana. The state’s mortgage lending restrictions under Ind. Code § 24-4.5-3-209 apply only to consumer credit transactions, and do not restrict prepayment penalty provisions for non-consumer, business-purpose mortgage loans such as DSCR Loans. As such, DSCR Lenders can typically offer all standard prepayment penalty options such as Descending Prepay Penalties (i.e. “5/4/3/2/1”), Flat Prepay (i.e. 5/5/5/5/5) or other tailored structures in the Hoosier State.
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