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Updated 3 days ago on . Most recent reply

User Stats

31
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6
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Ryan Miller
  • Rental Property Investor
  • Owings, MD
6
Votes |
31
Posts

DSCR Loan – 2% Broker Origination Fee – Is This Normal?

Ryan Miller
  • Rental Property Investor
  • Owings, MD
Posted

I’m working on a 10-property (13-unit) portfolio deal. The contract price is $2 million, and the appraised value is around $2.24 million. We have 20% down and everything has been moving along smoothly.

However, I just received the final numbers from the lender and noticed they've included a 2% broker origination fee on this loan. It's a DSCR loan, and while I've closed many conventional and investor loans in the past, this is my first DSCR product.

In all my previous deals, origination fees have typically ranged from 0.25% to 0.5%, so this caught me off guard.

Is a 2% broker fee standard or reasonable for DSCR loans? Or should I be negotiating this down?

Appreciate any insight from others with DSCR experience.

  • Ryan Miller
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