FAQ
Questions landlords ask before they refinance
Straight answers about how DSCR refinancing works and how we work as a broker. If yours is not here, ask it on the request form.
Is DSCR Refinance a lender?
No. DSCR Refinance is a brand of Loan Daddy LLC, a licensed mortgage broker (NMLS #2827624). We arrange and shop business-purpose financing from wholesale lenders. The lender you choose makes the credit decision and provides the loan.
What kinds of properties do you help refinance?
Non-owner-occupied investment property held for business purposes: single-family rentals, 2-4 unit buildings, small apartment buildings, condos and townhomes held as rentals, short-term rentals and some mixed-use properties, subject to each lender’s program rules.
Can you help with my primary residence or second home?
No. We only arrange business-purpose loans for investment property that you and your family will not live in. We do not arrange loans for primary residences, personal second homes or any personal, family or household purpose.
What is a DSCR loan?
A debt service coverage ratio loan qualifies primarily on whether the property’s rent covers its monthly payment of principal, interest, taxes, insurance and association dues, rather than on your personal income and debt-to-income ratio.
Can I refinance out of a hard money or bridge loan with a DSCR loan?
Often, yes. A long-term DSCR loan is a common exit from short-term financing once the property is complete and rent-ready. Success depends on the appraised value, the rent, seasoning rules and your timeline before maturity.
What is the difference between rate-and-term and cash-out refinancing?
A rate-and-term refinance replaces your loan without meaningfully increasing the balance, usually to change the structure or term. A cash-out refinance increases the balance and pays you the difference for business use. Lenders generally allow more leverage on rate-and-term.
Do you publish interest rates?
No. Pricing on business-purpose loans changes with markets and depends on your credit, leverage, property, prepayment structure and the program. We provide specific options after reviewing your scenario, and nothing on this site is a loan offer.
Do you need my tax returns?
Most DSCR programs do not use personal tax returns to qualify. Lenders still review credit, assets for reserves, the property, leases and the entity documents if you close in an LLC.
Can the loan close in my LLC?
Many wholesale DSCR programs allow closing in an LLC or similar entity, typically with a personal guarantee from the owners. Requirements vary by lender.
How long does a refinance take?
Timelines vary with appraisal turn times, title work, the complexity of the property and how quickly documents come in. If you are working against a maturity date, tell us right away so we can plan around it.
Do DSCR loans have prepayment penalties?
Many do. Common structures include step-down schedules and fixed-period fees, and some programs offer no-prepayment options with different pricing. We compare structures so you can match one to your hold period.
What does it cost to work with you?
Broker compensation and lender fees are disclosed in your loan documents before you commit. Ask us at any time how we are paid on your loan; we will explain it plainly.
Where are you licensed?
Loan Daddy LLC is a broker, not a lender. NMLS #2827624. AZ CMB Licensed · #CMB-2016143. See our licensing page for details.
Will submitting the form affect my credit?
Submitting our request form does not pull credit. If you decide to move forward with a specific loan, the lender or broker will ask for your authorization before any credit report is ordered.
Want more depth? Read our refinance guides or try the DSCR calculator.
Next step
Bring us the loan you have. We will show you the loans you could have.
Share your current balance, rent and maturity date. A Loan Daddy loan specialist will compare what wholesale lenders can offer for a business-purpose refinance and walk you through the trade-offs, without pressure.