Prepayment Penalty Rules for DSCR Loans in Wisconsin

Prepayment Penalties are Fully Allowed with Disclosure Requirements for DSCR Loans in Wisconsin. Wisconsin’s primary statute on prepayment penalties, Wis. Stat. § 428.207, applies only to consumer transactions made for personal, family, or household purposes. Because DSCR Loans are strictly commercial and used to finance rental properties only, they are exempt from these restrictions. There is a documentation requirement containing specific “loan product choice disclosure” that DSCR Lenders in Wisconsin must utilize, however this doesn’t restrict any prepayment penalty structures from being offered. Consequently, 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) or other tailored structures in the Badger State.

FULL Complete 2026 Guide To DSCR Loan Prepayment Penalties

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