DSCR Takeout Readiness Checklist

Property Readiness

Rehab / construction 100% complete

DSCR lenders require a completed, habitable property. No open permits or active construction.

Certificate of Occupancy (CO) obtained (if new construction or major renovation)

Many DSCR lenders require CO before funding. Obtain well in advance of your refi target.

All permits closed

Open permits block appraisals and DSCR approvals. Pull permit status from the municipality now.

COMMON KILLER

Property in rent-ready condition

Deferred maintenance suppresses appraised value and can delay the refinance.

Lease & Rental Income

Executed lease in place (or market rent documented for unleased)

DSCR = Monthly Rent ÷ Monthly PITIA. Both leased and unleased paths work at Upright.

COMMON KILLER

Rent amount supports DSCR (or as low as 0.75x)

Ask your Upright rep to model this before applying. We can tell you if you're there.

Lease is arm's-length; not rented to family at below-market rate

Related-party sub-market leases create DSCR underwriting issues.

Rental history documented (if prior rent history exists)

12 months of bank statements showing rental deposits strengthens the file. Required if qualifying off of short-term rents.

Loan & Financial Requirements

Current LTV within DSCR product guidelines

Upright DSCR: up to 80% LTV on purchase/rate-term refi (leased). Unleased refi: max 70% LTV.

Title is clear; no mechanic's liens from contractors

Collect lien waivers from your GC and subs as each draw is funded. Protects you at payoff.

Entity documentation current (if holding in LLC)

Same docs as preapproval. Must be in good standing at time of DSCR close.

Credit profile & performing loan status maintained

Avoid major new credit events or derogatory marks. DSCR pricing is very sensitive to your median FICO score. Clean VOM required.

Seasoning requirements understood

Some DSCR products require 3–6 months post-close. Ask your Upright rep about your timeline.

Milestone

When to Act

Why It Matters

Order by When to Act.

60 days before refi

Municipal closure can take weeks

Obtain CO (if applicable)

30 days before refi

Required for most DSCR approvals on new construction

Place tenant / execute lease

30 days before refi

Leased properties get better pricing and higher LTV

Contact Upright about DSCR

60 days before RTL maturity

Time to structure, appraise, and close cleanly

Order appraisal

30 days before refi

Appraisals can take 2–3 weeks; don't wait

Request RTL extension (if needed)

45 days before maturity

Extensions available if requested proactively

DSCR application submitted

30–45 days before refi close

Full pipeline so nothing stalls

DSCR Takeout Readiness Checklist

Subscribe to Our Blog

Ready to fund your next deal?

Ready to fund your next deal?