How to Choose a DSCR Lender: 12 Questions That Expose the Pretenders

Published September 2026 · By the SLA Capital team

Every DSCR lender's ad says the same three things: low rates, fast closings, no tax returns. The differences that will actually cost or make you money live in the details nobody advertises. Ask these twelve questions — of us included — and the pretenders identify themselves.

The money questions

1. "Is your rate sheet published?" If hearing a rate requires a phone call and a pitch, the rate moves once you're emotionally committed. A lender confident in its pricing posts it. (Ours is here, always current.)

2. "Is the quoted rate honored at closing?" The oldest trick in non-QM is the closing-table bump — a quote that drifts 25–50bps once you've paid for an appraisal and can't easily walk. Get the answer in writing. Our answer: the rate you're quoted is the rate you close at.

3. "What are total points and fees — all of them?" A 5.99% teaser with 3 points and $3,000 of junk fees loses to a 6.25% with 1 point. Demand an itemized term sheet before any fee is charged. Application fees and appraisal fees before a term sheet are a red flag; we charge neither.

4. "What's the prepayment structure?" Step-down penalties (5-4-3-2-1 vs 3-2-1), buy-down options, and what happens if you sell in year two. If you might exit early, the prepay term matters more than 25bps of rate.

The structure questions

5. "How long is cash-out seasoning?" The single most consequential number for a BRRRR investor. The DSCR standard is 6 months — that’s ours, committed in writing; conventional is 12. If a lender quotes shorter, get it in writing and read the fine print.

6. "Do I need a lease to close?" Good lenders qualify vacant properties on the appraiser's market-rent report. Lenders who demand a signed lease force you to rent before you refinance — a scheduling problem you don't need.

7. "Can I close in my LLC — and does it cost me anything?" Entity vesting should be standard, not a pricing adjustment. Same rate, entity or individual. The LLC guide covers what documents to have ready.

8. "How do you treat short-term rentals?" Two schools: underwrite projected Airbnb revenue (looks generous, priced and haircut accordingly) or qualify on long-term market rent and let the STR upside stay yours. Know which you're getting — here's the difference.

The execution questions

9. "Are you the lender or a broker?" Brokers can add real value, but a broker presenting as a direct lender means an extra margin and an extra game of telephone in underwriting. Ask directly; watch for a straight answer.

10. "What's your actual average time to close?" Not the marketing number — the average. Then test responsiveness before you commit: send a scenario email. If pre-application sales takes three days to reply, imagine underwriting.

11. "What happens when my file hits a wrinkle?" Every file has one — a title surprise, an appraisal 5% light, a credit blip. The difference between lenders is whether a human looks for a path or a system spits a decline. Ask for an example of an exception they've made.

12. "Can I verify you?" An NMLS ID you can look up on NMLS Consumer Access, industry membership (AAPL), a real address, reviews from repeat borrowers. Thirty seconds of checking filters out the worst outcomes entirely. (Sir Lends A Lot LLC · NMLS #2863552, if you're checking us — please do.)

Scoring the answers

You're not hunting for a perfect lender; you're hunting for an honest one whose box fits your strategy. A flipper cares most about questions 1–3 and 10. A BRRRR investor lives and dies by 5 and 6. A portfolio builder should weight 7 and 11. And everyone should treat a dodge on question 2 as disqualifying — a lender who won't commit to their own quote has told you the quote is bait.

The pattern across all twelve: transparency up front predicts execution at the closing table. Lenders who publish rates, itemize fees, and answer seasoning questions with a number run their underwriting the same way.