Think like an underwriter: Structuring winning DSCR deals
Most DSCR friction happens when brokers structure for approval instead of risk alignment. Underwriters assess whether the structure logically supports the asset and long-term viability. When you structure the way underwriting evaluates, approvals become predictable and timelines shorten.
START WITH DEFENSIBILITY
Review the file as if you were underwriting it and resolve any weak points before submission. ANTICIPATE CONDITIONS
Ensure leverage and DSCR are stable and supported by verifiable inputs, not optimistic assumptions.
Confirm rent, insurance, taxes, and HOA before quoting because underestimated expenses create avoidable conditions. VERIFY EVERY INPUT If one element of the file is aggressive, strengthen another area such as reserves or leverage to offset overall risk. BALANCE THE RISK PROFILE Match leverage and prepayment structure to the investor’s intended hold period to prevent future friction. ALIGN WITH EXIT STRATEGY
YOUR DSCR DEAL CHECKLIST:
□ Rent is verified and supported □ Full PITIA is calculated accurately □ DSCR is stable, not borderline □ Leverage aligns with investor strategy □ Insurance and HOA are confirmed □ Reserves are documented □ Credit supports pricing tier □ Exit strategy aligns with loan terms
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