Investors: What's Your #1 DSCR Refinance Frustration?
Member since 2025 · 2 posts · 1 vote
Investors: What's Your #1 DSCR Refinance Frustration?
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1yQuote from @Erik Estrada:
Quote from @Ashlee Fake:
When you're refinancing with a DSCR loan, what's the single biggest factor that helps you decide which lender to go with?
DSCR borrowers: If a lender could solve one pain point for you when refinancing, what would it be?
For those who’ve refinanced with a DSCR loan recently:👉 What went well?👎What do you wish had gone better?
On the broker side here are a few things that bother me ALOT working with direct and wholesale lenders:
1. Lack of Communication - Takes until the next business day to get a response on something very time sensitive. At least acknowledge and say, I have not gotten an update yet instead of ghosting.
2. Lack of Experience - Don't be the guy that says NO, without asking upper management or your underwriter. You will lose $ all the time
3. Outdated Portals - I absolutely hate uploading docs on a dinosaur website that uses encompass lol.
4. Very Slow at giving pricing - I know it is the end of the month, but time is money. At least get back to me at the end of the day.
5. Handle Appraisals, Title, Insurance and Third party Internally - I hate this with a passion. I do not like to follow bank-like procedures and this is why I prefer to work with wholesale lenders. Having control over these items is a must for me.
I think it also boils down to experience of who you are working with and how far down the food chain they are. We have seen deals where there were multiple brokers daisy chained and we just pass on those as the terms will never be that great because of all the fees involved.
WOrking with experienced people in any field is always best way to go, and not always the "cheapest"
7e investments53 Reviews
8 Replies
- 1yJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
Quote from @Ashlee Fake:
When you're refinancing with a DSCR loan, what's the single biggest factor that helps you decide which lender to go with?
DSCR borrowers: If a lender could solve one pain point for you when refinancing, what would it be?
For those who’ve refinanced with a DSCR loan recently:👉 What went well?👎What do you wish had gone better?Hi @Ashlee Fake, welcome to the BP Forum! As a real estate agent, what frustrations are your clients experiencing with DSCR refinance loans?
- 1yBrian TeeterBusiness MemberLittle Rock, AR · Member since 2021 · 75 posts · 64 votes
I am an investor myself and also work with BRRR buyers in Little Rock, Arkansas. In both cases, I have had great success with Aaron Chapman https://crosscountrymortgage.com/mesa-az-3938/aaron-chapman/
I have been working with him for years and he is an excellent resource. Works with borrowers nationwide
Turnkey Property Management4.8170 Reviews - 1yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Ashlee Fake:
When you're refinancing with a DSCR loan, what's the single biggest factor that helps you decide which lender to go with?
DSCR borrowers: If a lender could solve one pain point for you when refinancing, what would it be?
For those who’ve refinanced with a DSCR loan recently:👉 What went well?👎What do you wish had gone better?On the broker side here are a few things that bother me ALOT working with direct and wholesale lenders:
1. Lack of Communication - Takes until the next business day to get a response on something very time sensitive. At least acknowledge and say, I have not gotten an update yet instead of ghosting.
2. Lack of Experience - Don't be the guy that says NO, without asking upper management or your underwriter. You will lose $ all the time
3. Outdated Portals - I absolutely hate uploading docs on a dinosaur website that uses encompass lol.
4. Very Slow at giving pricing - I know it is the end of the month, but time is money. At least get back to me at the end of the day.
5. Handle Appraisals, Title, Insurance and Third party Internally - I hate this with a passion. I do not like to follow bank-like procedures and this is why I prefer to work with wholesale lenders. Having control over these items is a must for me.
LuxePrivate Investments LLC 572 Reviews- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Erik Estrada:
Quote from @Ashlee Fake:
When you're refinancing with a DSCR loan, what's the single biggest factor that helps you decide which lender to go with?
DSCR borrowers: If a lender could solve one pain point for you when refinancing, what would it be?
For those who’ve refinanced with a DSCR loan recently:👉 What went well?👎What do you wish had gone better?On the broker side here are a few things that bother me ALOT working with direct and wholesale lenders:
1. Lack of Communication - Takes until the next business day to get a response on something very time sensitive. At least acknowledge and say, I have not gotten an update yet instead of ghosting.
2. Lack of Experience - Don't be the guy that says NO, without asking upper management or your underwriter. You will lose $ all the time
3. Outdated Portals - I absolutely hate uploading docs on a dinosaur website that uses encompass lol.
4. Very Slow at giving pricing - I know it is the end of the month, but time is money. At least get back to me at the end of the day.
5. Handle Appraisals, Title, Insurance and Third party Internally - I hate this with a passion. I do not like to follow bank-like procedures and this is why I prefer to work with wholesale lenders. Having control over these items is a must for me.
I think it also boils down to experience of who you are working with and how far down the food chain they are. We have seen deals where there were multiple brokers daisy chained and we just pass on those as the terms will never be that great because of all the fees involved.
WOrking with experienced people in any field is always best way to go, and not always the "cheapest"
7e investments53 Reviews - 1yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Chris Seveney:
Quote from @Erik Estrada:
Quote from @Ashlee Fake:
When you're refinancing with a DSCR loan, what's the single biggest factor that helps you decide which lender to go with?
DSCR borrowers: If a lender could solve one pain point for you when refinancing, what would it be?
For those who’ve refinanced with a DSCR loan recently:👉 What went well?👎What do you wish had gone better?On the broker side here are a few things that bother me ALOT working with direct and wholesale lenders:
1. Lack of Communication - Takes until the next business day to get a response on something very time sensitive. At least acknowledge and say, I have not gotten an update yet instead of ghosting.
2. Lack of Experience - Don't be the guy that says NO, without asking upper management or your underwriter. You will lose $ all the time
3. Outdated Portals - I absolutely hate uploading docs on a dinosaur website that uses encompass lol.
4. Very Slow at giving pricing - I know it is the end of the month, but time is money. At least get back to me at the end of the day.
5. Handle Appraisals, Title, Insurance and Third party Internally - I hate this with a passion. I do not like to follow bank-like procedures and this is why I prefer to work with wholesale lenders. Having control over these items is a must for me.
I think it also boils down to experience of who you are working with and how far down the food chain they are. We have seen deals where there were multiple brokers daisy chained and we just pass on those as the terms will never be that great because of all the fees involved.
WOrking with experienced people in any field is always best way to go, and not always the "cheapest"
I agree,
Yea you can totally tell when brokers try to act like they are a direct lender.... The easiest give away is when they charge excessive points and don't have straight answers when you call them.
LuxePrivate Investments LLC 572 Reviews
- 1yJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
Quote from @Carrie Matuga:
One of the biggest frustrations I see with DSCR loans is the gap between how they’re marketed and how they actually work.
They’re often pitched as “easy” or “no-doc,” and while they are easier than conventional loans in some ways, they’re absolutely not low-document — and they’re far from frictionless.
Documentation Surprises
Many investors are caught off guard by how much documentation is required. Common sticking points include:
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Verification of rent or mortgage on your primary residence
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A recent utility bill to confirm occupancy
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Six months of reserves, even on rate-and-term or cash-out refis where no funds are required to close
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401(k) and retirement accounts being discounted to 60% of their value
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Lenders requiring PDFs with full account details — screenshots aren’t accepted, and missing information (like account number or name) means resubmitting
Tedious Corrections That Slow Everything Down
The closing process is often delayed by minor, technical issues that feel like death by a thousand cuts:
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Appraisal revisions for things like a refrigerator not being labeled correctly on the report
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Title corrections that go back and forth with the title company
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Insurance documentation — lenders often want a formal invoice proving the policy is paid in full, and it’s shocking how many insurance companies struggle to provide this in a clear, timely format
Each of these delays typically adds 24–48 hours, and because most lenders don’t work evenings or weekends, momentum can stall quickly. Refinances often get pushed to the bottom of the pile behind purchases, which creates timing crunches — especially at the end of the month.
Credit Score Still Matters
Another misconception I hear all the time is: “It’s an asset-based loan — why does my credit matter?”
It matters. A lot.
DSCR loans are business-purpose and based on the property's cash flow — but your credit score is still the gate that opens the door. Without it, you don’t get access to the rest of the structure.
Pricing is based on three core factors:
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Your credit score
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Your leverage
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The property’s DSCR ratio
That 5.99% rate you saw advertised? It assumes:
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Perfect 800+ credit
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Low LTV
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A DSCR of 1.25+
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No adjustments for property type, seasoning, or location
Most real-world deals don't check every box — so when the actual rate comes back higher, it creates confusion and frustration. But it's not bait-and-switch — it's just not a full picture of how DSCR pricing works.
Lack of TRID / RESPA Protections
Another surprise for many borrowers is that DSCR loans aren’t subject to TRID or RESPA in the same way conventional loans are.
That means:
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No three-day disclosure rule before closing
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Lenders often wait until the last minute to issue closing statements and documents
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Borrowers are expected to sign quickly, with little time to review or correct issues
This creates a lot of stress for clients — and as a broker, it’s just as frustrating for me when we’re scrambling to make changes with no room left in the timeline. It's a commercial loan, so the compliance landscape is different, but borrowers usually aren’t prepared for how rushed it can feel.
The Broker's Balancing Act
As a broker, I’m constantly trying to walk the line between being sympathetic to my clients — who are understandably frustrated by the back-and-forth — and empathetic to the lenders, who are putting out hundreds of thousands of dollars and need to protect their risk.
From the lender’s perspective, the documentation requests aren’t unreasonable. But from the borrower’s side, especially for those expecting a streamlined process, it can feel overwhelming and disorganized. The more we can align expectations up front, the better the experience for everyone.
Bottom Line
DSCR loans are a powerful financing tool — especially for scaling a rental portfolio without DTI constraints — but they come with friction, documentation, and quirks that many investors aren't prepared for.
They’re not no-doc. They’re not always quick. And they don’t play by the same rules as conventional loans.
If you go in eyes wide open, with a responsive team and realistic expectations, they can be one of the most efficient and scalable financing solutions out there. But they work best when borrowers understand the full picture — not just the marketing.
@Ashlee Fake @Carrie Matuga Make sure to add in the advertising that the DSCR loan can be "Up to" a certain LTV % without mention of the maximum DSCR that is required that will ultimately limit the actual LTV that can be used.
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- Lender · Ellington, CT · Member since 2024 · 210 posts · 103 votes1y
The most frustrating things that I've seen are poor appraisals, poor (or lack of) communication, and slow document collection.
POOR APPRAISALS: can ruin your deal. Whether it's the property value coming in way under what you anticipated, unexpected repairs that trigger "subject to" on the report, bad/no comps, or low market rents. Making sure that the property is in good condition and doing your own research (or having your agent look) for comps in both the home value and market rental value can help with expectations and save lots of time.
POOR COMMUNICATION: This is a 2-way street for the lender/broker and the borrower. If your lender waits to tell you that rates went before you could rate lock you'd be mad. If you're trying to rate lock a file and can't get a hold of the borrower, then suddenly rates go up, everyone is upset. Finding out that a property is rented by the room instead of a long-term lease can also impact your loan from LTV to interest rate. When issues pop up they should be addressed as soon as possible since the longer it's ignored the more painful it will be when it does inevitably need to be addressed.
SLOW DOCUMENT COLLECTION: This goes both ways with getting the docs to your lender and the lender reviewing them. On the lending side it can be very frustrating when someone gives a hard closing date then disappears a day after you create their file just to come back panicked about when they can close. On the flip side it would be extremely frustrating to send documents in just to find out that edits or corrections are needed days after you'd sent them in. To have the cleanest closing and most enjoyable process both parties need to send, collect, and review the documents in a timely manner.
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