FAQ
Questions investors ask us most
Short, direct answers. Where a topic deserves more depth, our pricing-factor pages and guides go further.
Why doesn’t DSCR Rates publish interest rates?
Because a DSCR rate is built from a market-driven base price plus adjustments for your LTV, credit, DSCR, prepayment structure, payment type, property type and loan size. A single published number would be wrong for most readers and out of date within days. We explain the factors and then quote your actual scenario.
Is DSCR Rates a lender?
No. DSCR Rates is a brand of Loan Daddy LLC, a licensed mortgage broker (NMLS 2827624). We do not lend money. We arrange and shop financing from wholesale lenders on your behalf.
What is a DSCR loan?
A business-purpose loan on an investment property that qualifies primarily on the property’s rental income compared with its monthly payment (the debt service coverage ratio), rather than on your personal income.
How is DSCR calculated?
Gross monthly rent divided by the monthly principal, interest, taxes, insurance and HOA dues (PITIA). A ratio of 1.00 means the rent exactly covers the payment.
What DSCR do I need?
Many programs treat 1.00 as a key threshold, and stronger coverage often earns better pricing. Some wholesale lenders offer options below 1.00 with lower leverage and higher cost. Requirements vary by lender.
Can I use a DSCR loan on a home I will live in?
No. We only arrange business-purpose loans on non-owner-occupied investment property. If you or a family member will occupy the property, it is not eligible.
Which factors affect DSCR loan pricing the most?
Loan-to-value and credit score are usually the heaviest, followed by the DSCR ratio, the prepayment penalty structure and whether payments are interest-only. Property type, loan size and loan purpose also appear on most pricing grids.
Does choosing a prepayment penalty really lower my price?
On most DSCR programs, yes. A longer prepayment period generally improves pricing, while choosing no penalty costs more. It only makes sense if it fits how long you expect to keep the loan.
Do I need tax returns for a DSCR loan?
Typically not. DSCR programs generally qualify the property rather than your personal income. You will still document assets, reserves, credit, the property, leases and, if applicable, your entity.
Can I close in an LLC?
Many wholesale lenders allow vesting in an LLC or other entity, usually with a personal guarantee from the owners. We confirm the requirements for each lender we shop.
Do short-term rentals qualify?
Often, yes. Wholesale lenders measure short-term rental income in different ways, using booking history, market data or long-term market rent. Matching the property to the right method matters.
Will requesting a quote affect my credit?
Submitting our inquiry form does not authorize a credit pull. A credit report is ordered later, with your permission, when we are preparing a file for a specific lender.
What is a rate lock?
A lender’s commitment to hold your quoted pricing for a set number of days while the loan closes. It protects you from market movement, but pricing is recalculated if facts in your file change.
Which states do you work in?
Loan Daddy LLC’s licenses are listed on our licensing page: AZ CMB Licensed · #CMB-2016143; and Whether we can help in another state is determined by the transaction and applicable law, so ask us about your property’s location.
Is a quote a commitment to lend?
No. A quote is an estimate based on the information provided. All loans are subject to underwriting and lender or investor approval, and terms are subject to change until locked and approved.
Ready for a number that is actually yours?
Published rate tables cannot account for your LTV, DSCR, credit, prepayment choice and property. Send us the scenario and we will shop it with wholesale lenders and return a custom quote.