Are Prepayment Penalties Allowed on DSCR Loans in Nevada?

[Robin Simon]

Prepayment Penalty Rules for DSCR Loans in Nevada

Prepayment Penalties are Fully Allowed with no restrictions for DSCR Loans in Nevada. Nevada law does not restrict prepayment penalties for business-purpose loans such as DSCR Loans. The Nevada Revised Statutes governing mortgage lending, including NRS 645B.340, outline requirements primarily directed at consumer-purpose lending and do not impose penalty limitations for investment or commercial loans such as DSCR Loans. As such, DSCR Lenders can typically offer all standard prepayment penalty options such as Descending Prepay Penalties (i.e. “3/2/1”), Flat Prepay (i.e. 5/5/5/5/5) or even California-Style (i.e. 6 Months Interest, 20% Freely Prepayable, 5 Year Duration) and other tailored structures in the Silver State.

FULL Complete 2026 Guide To DSCR Loan Prepayment Penalties

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