---
title: "DSCR Loan Guidelines Underwriting & QC AI Agent | Kolena"
url: "/agent-library/dscr-loan-underwriting/"
description: "A pre-built AI agent from Kolena that underwrites and QCs business-purpose DSCR rental loans against your DSCR loan guidelines and investor overlays."
updated: 2026-08-11T20:54:34+00:00
---

# DSCR Loan Underwriting / QC

Underwrite and QC a business-purpose DSCR rental loan - DSCR, LTV, and reserves recomputed and graded against your DSCR loan guidelines and investor overlays, every value cited.

## Impact

Manual per-file DSCR underwriting and QC review replaced by a recomputed, cited disposition graded against program and investor overlays in minutes (per loan application)

## What it extracts

- **Underwriting Summary** — A one-look roll-up of the loan's economic and legal spine - borrower, property, program, DSCR, LTV, and FICO - so a reviewer can orient before reading the detail.
- **Loan Terms & Program** — The DSCR product and note terms - amount, rate, amortization, interest-only, lien, and the state-sensitive prepayment penalty - that drive the payment and every program overlay.
- **Borrower, Credit & Guaranty** — The borrower/guarantor and credit facts an underwriter grades, centered on the representative decision FICO and how it was selected across multiple guarantors, plus derogatory-event seasoning.
- **Entity & Vesting** — How title and the loan vest - individual or entity, guaranty structure, and good standing - since DSCR business-purpose loans commonly close in an LLC.
- **Subject Property & Appraisal** — The property and valuation facts from the appraisal, including which appraisal form was used (1004/1025/1073 plus the 1007 rent schedule), the as-is and after-repair values, and appraisal age.
- **Rent Schedule & DSCR Inputs** — Every input to the DSCR calculation - qualifying gross rent and its source (actual lease vs Form 1007/1025 market rent), and each PITIA component - captured so the ratio can be recomputed independently.
- **Reserves & Assets** — The borrower's verified liquid assets and reserves in months of PITIA, funds to close, and asset seasoning - a core DSCR program overlay.
- **Title, Transaction & Seasoning** — Title vesting, ownership seasoning, and the acquisition-plus-rehab cost basis that drive the cash-out and delayed-financing tests on a refinance.
- **Computed DSCR** — An independent recomputation of DSCR (qualifying rent / PITIA, or ITIA for interest-only) that is compared against the DSCR printed on the rate lock so the underwriter never relies on the borrower's or broker's own math.
- **Computed LTV / LTC** — An independent recomputation of the binding leverage ratio - loan-to-value against appraised value, or loan-to-cost against acquisition plus rehab for a short-seasoned cash-out - returning the more constraining figure.
- **Reserves Coverage (Months)** — An independent recomputation of reserves expressed in months of PITIA, tested downstream against the program's required reserves.
- **Flood & Hazard Insurance Compliance** — A checklist of the property-insurance requirements a DSCR loan must satisfy - flood determination and SFHA coverage, hazard adequacy, and loss-of-rents coverage - each graded PASS/FAIL/WARN/N/A.
- **Underwriting QC Checklist & Knockouts** — The deterministic underwriting QC checklist - bright-line eligibility knockouts plus tiered DSCR, FICO, LTV, reserves, seasoning, appraisal, title, and documentation rules - each recomputed with the arithmetic shown and graded independently.
- **Investor Overlay Matrix** — A configurable takeout-investor overlay grid that grades the loan against a program's published guidelines so the lender can confirm the loan is saleable; where the matrix is silent it applies an industry default and flags WARN.
- **Underwriting Decision** — The single aggregated disposition - Approve, Approve with conditions, Refer to underwriter, Suspend, or Decline - with any knockout failure inheriting straight to Decline.
- **Decision Rationale & Conditions** — A tight underwriter-facing narrative of the drivers, knockout failures, conditions to clear, exceptions needing sign-off, and any data-integrity flags, with each driving value cited.

## Where it fits

- **Process** — Business-purpose DSCR rental-loan underwriting and pre-purchase QC
- **This step** — Underwriting / QC
- **Upstream** — Loan intake and processing - a complete rate-locked file (rate lock, appraisal with rent schedule, leases, credit, title, assets, insurance, entity documents) assembled by processing
- **Downstream** — Conditions clearing and closing; Post-close QC and pre-purchase / pre-securitization review; Loan Boarding

## What it needs

### Documents
- Rate lock / term sheet (DSCR worksheet)
- Appraisal with Form 1007 or 1025 rent schedule (and Form 216 where present)
- Executed leases
- Credit report
- Title commitment and vesting deed
- Payoff and settlement statements
- Asset / bank statements
- Hazard and flood insurance policies and flood determination (SFHDF)
- Entity documents (operating agreement, EIN, good standing)

### Systems
- Loan origination system (LOS)
- Document repository
- Email
- Google Drive

### Prerequisites
- Your program guidelines / underwriting matrix
- Your takeout investor overlay matrix, where the loan is sold
- A complete rate-locked loan file

## What it produces

A cited underwriting decision with recomputed DSCR, LTV/LTC, and reserves, a graded QC checklist with knockouts, an investor overlay comparison, and a conditions/rationale write-up

### Destinations
- Loan origination system
- Underwriting / QC work file
- Credit-committee package
- Correspondent purchase review

## Review model

An underwriter reviews the flagged knockouts, checklist FAIL/WARN rows, and every cited value before the disposition is trusted; exceptions route to credit-committee sign-off.

## Who uses it

- DSCR / Non-QM Underwriter
- Loan QC / Post-Close Review Analyst
- Credit / Underwriting Manager
- Correspondent / Aggregator Acquisition Analyst

## Volume fit

- **Works best for** — lenders, correspondents, and aggregators underwriting or QC-reviewing dozens or more DSCR rental loans a month
- **Too small for** — a one-off single loan an underwriter can hand-grade faster than configuring the program overlays

## Grounded in

- Debt Service Coverage Ratio (DSCR) - residential rental underwriting convention: DSCR = gross monthly rent / PITIA (ITIA for interest-only) _(verified 2026-07-22)_
- Truth in Lending Act / Regulation Z, 12 CFR 1026.3(a) (business-purpose exemption) _(verified 2026-07-22)_
- Fannie Mae Form 1007 (Single-Family Comparable Rent Schedule) and Form 1025 (Small Residential Income Property Appraisal Report); Form 216 (Operating Income Statement) _(verified 2026-07-22)_
- Flood Disaster Protection Act (FDPA), 42 USC 4012a; Standard Flood Hazard Determination Form (SFHDF, FEMA Form 086-0-32) _(verified 2026-07-22)_
- State prepayment-penalty law for business-purpose / non-owner-occupied loans (varies by state) _(verified 2026-07-22)_
- USPAP (Uniform Standards of Professional Appraisal Practice) - appraisal currency and second-valuation practice _(verified 2026-07-22)_

## Provenance

based on a production deployment at a business-purpose real estate lender