What Information Is needed on a DSCR Loan Application?

[Robin Simon]

🤔What Information Is needed on a DSCR Loan Application?
➡️While different DSCR Lenders will offer different versions of DSCR Loan applications, the information required will largely be consistent and include the same general requirements. A loan application for a DSCR Loan will typically take around 15 minutes to complete, give or take the complexity of the scenario and each lender's unique process. Generally, you will need to provide brief information on the investment property such as address and tenancy, the estimated financial, credit and experience of the borrowers or sponsors, loan request details like loan amount and terms requested, entity information if you are utilizing an LLC or trust/corporate structure to borrower and finally a declarations page that includes optional demographic information and signed declarations about knowledge of citizenship/visa status and any potential significant past or current credit issues.

Some DSCR Lenders will use what is called a Uniform Residential Loan Application ("URLA" or "1003 Form"), which is the same standard application used for conventional loans and crafted by Fannie Mae. This is especially likely for DSCR Lenders that offer DSCR Loans in addition to more traditional options, including conventional loans and other DTI-based non-QM loan types.
While using the standard 1003 Application for a DSCR Loan has some advantages, such as familiarity and consistency and the ability to potentially present different quote options not only within DSCR Loan structures but other potential loan types the borrower may qualify for, there are some downsides as well. For one, there is information included on the 1003 that is not relevant for DSCR Loans (such as personal employment and income information), which can be confusing and extra paperwork and time spent for investors (who, like most of humanity, tend to strongly dislike both things!).

DSCR Loan Process: Documents Overview: Stage 2: Application & Credit Authorization
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