DSCR Loan Closing Costs: What to Budget For
Closing costs on a DSCR loan generally fall into the same categories as any real estate purchase, with a few DSCR-specific line items to plan for.
Lender fees
Expect origination points, underwriting fees, and possibly a processing fee — these vary by lender and loan program.
Third-party fees
Appraisal (including any STR income/rent-schedule addendum), title insurance, escrow/closing fees, and recording fees apply as they would on any purchase.
Prepaid items
Plan for prepaid property taxes, homeowners insurance, and interim interest, plus any required reserve deposits into an escrow account.
DSCR-specific costs
If your property needs a rent schedule or short-term rental income analysis as part of the appraisal, that's typically an added cost compared to a standard owner-occupied appraisal.
Rough ballpark
As a general rule of thumb, many investors budget somewhere around 2–5% of the loan amount for total closing costs, though this varies by state, lender, and loan size — get an actual Loan Estimate from your matched lender for real numbers.
Get matched with a DSCR lender for a personalized cost breakdown.