Before You Send Your Deal to a Lender —
Make Sure the Numbers Actually Work
Most investors submit deals that fail basic DSCR underwriting.
In this 30-minute call we review the numbers and determine if the deal is submission-ready.
Before you send your deal to a lender, make sure the numbers actually work.
Book a 30-minute DSCR deal review.
Most deal reviews end with one of three outcomes: submission-ready, fix before submitting, or walk away.
30-minute call • No credit pull • No obligation
Investor-to-Investor Deal Review — No sales pitch. Just numbers.
Why Investors Request a Deal Review
Many investors request a review before submitting a DSCR loan application so they can confirm the numbers, avoid unnecessary credit pulls, and identify potential underwriting issues.
If the deal is ready, we can also help point you toward lenders that best fit the scenario.
What This Call Is NOT
- Not a loan application
- No credit pull
- No obligation to use any lender
- No sales pitch
The only goal of the call is to review the deal numbers and determine whether the property is submission-ready.
1) What Is a DSCR Loan and How It Actually Works
DSCR loans are built around one question: does the property’s income cover the debt? Instead of focusing on your personal income, the lender looks at whether the rent can support the payment on the property itself.
If the rent covers the payment, you may qualify. That is the core idea. No tax returns, no W-2s, and no traditional DTI underwriting.
The math looks simple, but the details are where investors get tripped up. If you want the deeper breakdown first, review the full DSCR formula explanation before you start plugging in numbers.
“Rent” Is Not Always the Number You Expect
You might collect $3,200 per month, but if the appraiser’s market rent comes back at $2,900, that is usually the number the lender uses. Your lease does not automatically override the appraisal.
For short-term rentals, it gets trickier. Many lenders rely on third-party rental analysis, and those numbers can come in far lower than what the property is currently producing.
PITIA Is More Than “The Mortgage”
- Principal and interest: based on the actual loan amount, rate, and term
- Taxes: often based on a reassessed post-purchase number, not the seller’s old tax bill
- Insurance: a real quote for the property type and location, not a placeholder guess
- Association dues: HOA or condo fees, where applicable
What Ratio Do You Need?
| DSCR | What It Means | Lender Outlook |
|---|---|---|
| Below 0.75 | Property loses money monthly | Hard no from virtually all lenders |
| 0.75 – 0.99 | Rent does not fully cover PITIA | Very few lenders; higher rates, lower LTV |
| 1.00 | Breakeven | Minimum threshold for some programs |
| 1.00 – 1.24 | Slight positive coverage | Approved with many lenders |
| 1.25+ | Strong coverage | Best rates, highest LTV, more flexibility |
| 1.50+ | Excellent | Premium terms and more lender options |
2) The 6 Reasons DSCR Deals Get Denied
Most denials are not mysterious. They usually come from the same predictable mistakes. If you want the broader breakdown of common underwriting misses, read the full page on DSCR deal killers after this section.
#1: Property Taxes Were Underestimated
This is one of the most common deal killers, especially in reassessment-heavy markets. You plug in the seller’s old tax bill, the deal looks fine, then the county reassesses at your purchase price and the DSCR drops hard.
Always underwrite taxes off the purchase price or a realistic post-close estimate, not the current owner’s bill.
#2: Insurance Was Guessed
Investors still plug in placeholder insurance numbers all the time. That can be deadly on older buildings, mixed-use properties, coastal assets, and properties with unusual risk characteristics.
Get a real quote before you submit. Even a broker estimate is better than guessing.
#3: The DSCR Was Calculated Wrong
Not every calculator uses the same assumptions. Some use gross rent. Some use appraisal rent. Some leave out association dues. Some use different note-rate assumptions. That is how you think you have a 1.20 deal and the lender tells you it is really a 1.08.
#4: No Rate Sensitivity Analysis
You may underwrite the deal at one rate, but the lender comes back higher because of your LTV tier, credit band, property type, or market. On a tight deal, a small move in rate can be the difference between approval and denial.
#5: Rent Was Not Supportable
Your current tenant may be paying one number, but if the appraiser supports less, the lender typically uses the lower rent. That is common in rapidly changing neighborhoods and in rent-sensitive product types.
#6: Lender Mismatch
Not every DSCR lender wants every property type. Some cap unit counts. Some limit mixed-use exposure. Some avoid certain states or asset classes. Sending the wrong deal to the wrong lender wastes time and momentum.
Need a Real-World Second Opinion?
Bring the rents, taxes, insurance estimate, purchase price, and rate assumptions. We will walk through the numbers together and tell you where the deal is solid, where it is fragile, and whether it is really submission-ready.
Exactly one purpose: review the deal and see whether it is submission-ready.
3) How to Stress Test Your Deal Before Submission
A stress test answers one question: how much can go wrong before the deal breaks? Before you submit to any lender, run the numbers through your own deal filter and then test what happens when the assumptions move against you.
You want to know how sensitive your DSCR is to changes in interest rate, taxes, insurance, and supported rent.
How to Run a Basic Stress Test
- Start with your base-case DSCR using realistic current numbers
- Increase the rate by 50 bps, then by 100 bps
- Increase taxes by 15% to 25% to simulate reassessment
- Increase insurance by 25% to 50%
- Review the worst-case result and ask whether the property still makes sense
4) What Lenders Actually Look At
Investors usually focus on the ratio itself. Lenders focus on the inputs underneath it. If you are asking, does this deal qualify, the answer depends on more than one headline number.
Appraiser’s Market Rent vs. Actual Rent
Even with a signed lease, a lender may still size the deal to the appraiser’s supported market rent.
Tax Reassessment
Many lenders will not underwrite off an outdated low tax bill if the purchase price tells a different story.
Insurance Bind Requirements
If the final quote comes in higher than your estimate, the file can be re-underwritten late in the process.
Credit and LTV Tiering
Your rate, LTV ceiling, and sometimes minimum DSCR requirement all move with credit and program fit.
5) Property Types and Lender Alignment
Submitting the wrong property to the wrong lender is one of the easiest mistakes to avoid. A clean way to screen this upfront is to compare the asset against your own deal filter and then check the lender box-by-box against the property profile.
| Property Type | What to Know Before Submitting |
|---|---|
| Single Family | Most widely available. Straightforward DSCR underwriting with broad lender coverage. |
| 2–4 Unit | Usually strong availability. Some lenders cap at 4 units and rely heavily on appraisal rent per unit. |
| 5+ Unit | Moves deeper into commercial territory. Lender pool narrows and valuation requirements change. |
| Condo / Townhome | Often available, but HOA review and project eligibility matter. |
| Mixed-Use | Fewer lenders. Commercial percentage and location can become the deciding issue. |
| Short-Term Rental | Usually underwritten with third-party projections, not your Airbnb screenshots. |
6) The Pre-Submission Checklist
Before you send a file anywhere, slow down and verify the inputs. A lot of avoidable denials come from deals that were never fully checked. The pre-submission checklist below covers the critical items — grab a copy before you submit.
Download the DSCR Pre-Submission Checklist
Before you send a DSCR deal to a lender, verify the numbers and assumptions first.
What email should I send the checklist to?
Opens instantly and sent to your email.
- DSCR calculated with full PITIA, not just principal and interest
- Taxes based on purchase price or realistic reassessment estimate
- Insurance based on a real quote or broker estimate
- Rent supported by market evidence, not optimistic assumptions
- Rate stress-tested at +50 bps and +100 bps
- Property type confirmed as eligible with the target lender
- LTV fits the lender range for the credit tier and asset type
- Exit strategy matches the loan structure and any prepay restrictions
- Every number is documented and explainable
Book a 30-Minute DSCR Deal Review
You have read the framework. You know where deals usually break. Now let’s look at your actual numbers and see whether the file is strong, marginal, or headed for trouble.
Investor-to-Investor Deal Review — No sales pitch. Just numbers.
What Happens on the Call
- We walk through DSCR, taxes, insurance, rent, rate, and lender fit
- You get honest feedback on where the deal is strong and where it is vulnerable
- If something is fixable, we talk through how to improve it
- If the file is ready, you can decide whether you want a lender introduction
- If it is not ready, you leave knowing exactly what needs to change
Why This Page Exists
Marine Corps veteran. Brooklyn born and raised. 20+ years in mortgage lending. 25+ years investing in rentals. This page exists to help investors catch issues before a lender does.
Quick Answers
Is the consultation actually free?
Yes. The review itself is free. If your deal is ready and you want a lender introduction, that is separate from the call.
Is this a sales call?
No. It is a deal review. The purpose is to look at the numbers and tell you where the file stands.
Will this affect my credit?
No. There is no credit pull just to have the review conversation.
Do I have to use your lender?
No. You can take the feedback and do what you want with it. There is no obligation.
What if my deal does not work?
Then you leave knowing why it does not work and what would need to change before you move forward.
No Hype. Just Real Numbers.