DSCR Loan Underwriting / QC

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.