Totally get where you’re coming from. The first time I went through a DSCR loan, I thought I was being pranked with some of the document requests—like, do they really need to see every random Venmo transaction? It’s frustrating, but I try to remind myself that underwriters are just covering all their bases. Still, it can feel like overkill. Hang in there... once you get through it, the payoff is usually worth the hassle.
Title: Getting through the DSCR loan maze: My step-by-step and a question
Honestly, the paperwork grind with DSCR loans is wild. I remember thinking, “Do they want my blood type next?” The Venmo thing cracks me up—like, are they really combing through my $12 pizza splits? But here’s the thing: as much as it feels like overkill, I’d rather deal with a few weeks of headaches than get stuck with a loan that bites me later. Underwriters are paranoid for a reason, and I can’t blame them after seeing some of the stuff that goes sideways in this business.
That said, I do think some lenders take it too far. There’s a difference between being thorough and just making people jump through hoops for no reason. I’ve started pushing back (politely) when they ask for stuff that’s just not relevant. Sometimes they back off, sometimes not, but it’s worth a shot.
At the end of the day, if you want to scale up with rentals, DSCR is one of the best tools out there—even if it means showing them your entire financial life story. Just gotta keep your eye on the prize.
There’s a difference between being thorough and just making people jump through hoops for no reason.
Couldn’t agree more. I’m in the middle of my first DSCR process and honestly, some of the requests feel like busywork. I get that they need to cover themselves, but when they asked for a breakdown of every deposit over $500, it felt a bit much. Still, I’d rather deal with the hassle now than regret it later. The transparency is good, but yeah, sometimes it’s just overkill.
I hear you on the deposit breakdowns—had to do the same thing last year, and it did feel like overkill at times. I guess from the lender’s perspective, they’re just trying to make sure there’s no funny business, but it can get a little ridiculous. I remember pulling up Venmo transfers for pizza night and having to explain those... not exactly high-stakes finance.
Still, I’d rather have them catch everything now than come back with questions when we’re about to close. One thing I’m curious about—did they give you any heads-up about these kinds of requests, or was it all just thrown at you as the process went along? I found that some lenders are better than others about setting expectations upfront. Makes me wonder if there’s a way to streamline this without cutting corners.
I remember pulling up Venmo transfers for pizza night and having to explain those... not exactly high-stakes finance.
Right? It’s wild what they’ll flag. I had to dig up a two-year-old Zelle transfer from my brother—literally labeled “birthday”—and still got asked about it. In my experience, most lenders don’t give much warning; you just get hit with random requests as the file moves through underwriting. Some are better than others, but I’ve never seen a truly streamlined process. Maybe it’s just the nature of DSCR loans? Either way, hang in there—it’s annoying, but once you’re through, it’s worth it.
