DSCR Investor Checklists

Running through this list before you apply reduces surprises in underwriting and keeps your timeline on track.

• Calculate your DSCR using gross monthly rent ÷ full PITIA payment (use our DSCR calculator)
• Confirm your FICO score is at or above your target lender's minimum (typically 620-680)
• Verify the property type is eligible (SFR, 2-4 unit, condo, STR — check lender restrictions)
• Confirm the property is non-owner-occupied (DSCR is for investment properties only)
• Identify the entity vesting — LLC, trust, or personal name — and confirm lender acceptance
• Calculate your LTV: (purchase price or loan amount) ÷ estimated value ≤ 80% on most programs
• Estimate closing costs including origination points, title, appraisal ($500-$800), and escrow
• Confirm you have sufficient reserves (typically 3-12 months PITIA) remaining after closing
• Verify the property has a current lease or you have a 1007 Rent Schedule estimate
• Check the prepayment penalty options — understand the step-down structure you'll be accepting
• Confirm the LLC is formed and in good standing in the state of property location
• If refinancing, verify title seasoning and ownership seasoning meet the lender's minimums
• Get a recent credit report to confirm no new derogatory items or recent hard inquiries
• Confirm the property has adequate insurance with the lender named as additional insured
• Choose your lock window — 30-day if you're ready, 45-day if timeline is uncertain

Complete these before going under contract so financing surprises don't kill your deal.

• Pull current market comps (3+ active and sold listings within 1 mile, similar size and age)
• Estimate gross market rent using Rentometer, Zillow Rent Zestimate, or local property manager
• Run the DSCR calculation at your target purchase price and down payment
• Verify the cap rate makes sense relative to comparable properties in the market
• Research local vacancy rates — areas above 10% vacancy will hurt your DSCR underwriting
• Confirm the property is zoned residential (commercial zoning affects DSCR eligibility)
• For condos: check if warrantable or non-warrantable, and identify HOA dues for PITIA calc
• For STRs: pull AirDNA or Mashvisor data on ADR and occupancy for comparable listings
• Check for active litigation, special assessments, or code violations on the property record
• Verify property taxes using the county assessor — don't rely on listing data
• Research the state's foreclosure timeline and rent control laws (see our state guides)
• Confirm the property has clear title — no open liens, IRS liens, or mechanic's liens
• Assess deferred maintenance: a major HVAC or roof issue can slow appraisal and add cost
• If 5+ units, confirm whether the lender uses residential (1-4 unit) or commercial DSCR guidelines
• If BRRRR: estimate ARV conservatively and run the DSCR refi math at your target LTV

Most DSCR loan surprises happen in the 48-72 hours before closing. This list prevents most of them.

• Review the final Closing Disclosure (CD) for accuracy — compare to Loan Estimate line by line
• Confirm the interest rate matches your locked rate commitment letter
• Verify the prepayment penalty structure in the CD matches what you agreed to
• Confirm the monthly PITIA payment matches your DSCR calculation
• Wire closing funds to the correct escrow account (confirm wire instructions with title directly)
• Verify the LLC vesting on the deed-to-be-recorded matches your operating agreement
• Confirm property insurance is in force and lender is listed as additional insured / mortgagee
• Confirm title insurance binder is in order for both lender policy and owner's policy
• Review all entity documents the lender required (operating agreement, articles of organization)
• Confirm personal guarantee signers are present or have valid POA if signing remotely
• Verify the loan amount and interest rate in the promissory note
• Confirm the loan term and amortization schedule in the mortgage/deed of trust
• Do a final walkthrough of the property if purchasing
• Confirm the existing tenant's lease is being assigned to you (if purchasing with tenants)
• After closing: set up automatic payment on the new loan to avoid late fees