Rental-Property Financing Checklist: DSCR and Cash-Flow Questions

A lender’s DSCR test and an investor’s cash-flow plan answer different questions. A property may fit a program while leaving little room in your own budget for repairs or vacancy. Use this checklist to prepare a comparison with your loan officer and your own advisers.

1. Confirm property use and program scope

• Identify the state, unit count, property type and intended rental use.
• Explain whether it is a purchase, refinance, long-term rental or proposed short-term rental.
• Confirm whether the program permits the ownership structure and intended use. A business-purpose DSCR loan is not a substitute for owner-occupied consumer financing.
• Check applicable rental rules, insurance availability and any association restrictions independently.

2. Ask how the lender calculates DSCR

Ask which rent evidence is accepted, how the lender treats existing leases or market rent, and which housing-payment components are included in its denominator. Do not assume that a general online calculator uses the lender’s method. Minimum ratios and other requirements vary by program.

3. Build a separate investor budget

4. Compare written financing terms

• Compare loan purpose, structure, fees, reserves and appraisal requirements under the same property assumptions.
• Ask about any adjustable rate, interest-only period, balloon feature or prepayment charge.
• Ask how a sale, refinance or early payoff affects the costs.
• Confirm which consumer or business-purpose disclosures apply; do not assume every investor loan receives the same Loan Estimate.

5. Bring questions, then use secure delivery

Start with the property state, use, estimated rent and financing goal. Your loan officer can explain which records are needed and how to send them securely. Do not upload borrower records to this checklist or send account credentials. The checklist is ungated and does not ask you to enter personal information.

Where C2C can help

Ask C2C about eligible DSCR and other rental-property options in California, Virginia, Colorado and Florida. Florida loans are brokered; the role in the other three states depends on the transaction. Expanded DSCR markets require separate confirmation; Tennessee is excluded. This page does not claim availability in every state.

Read the DSCR comparison · Discuss your property

Authoritative background

CFPB: Understanding a consumer Loan Estimate · CFPB: Prepayment penalties. These sources provide background; the specific loan’s purpose, legal treatment and lender requirements must be evaluated separately.