How Much Are DSCR Loan Closing Costs?

Updated September 2026 Rates as of August 2026

DSCR loan closing costs typically run 2%–5% of the loan amount, plus prepaid taxes and insurance. On a $300,000 DSCR loan, budget $6,000–$15,000 in lender and third-party fees before prepaids.

Use the DSCR closing cost calculator for a deal-specific estimate.

Common fee lines

Fee	Typical
Origination	0–2 points
Underwriting / processing	$995–$2,500
Appraisal	$500–$1,200
Title & escrow	0.5%–1.5%
Recording	$100–$500
Prepaid insurance / taxes	Varies

DSCR loan process and closing costs · DSCR rates

Worked example — $300K DSCR purchase

Fee line	Low	High
Origination (0–2 pts)	$0	$6,000
Underwriting / processing	$995	$2,500
Appraisal	$500	$1,200
Title & escrow	$1,500	$4,500
Recording	$100	$500
Subtotal (excl. prepaids)	~$3,100	~$14,700

Add prepaid taxes and insurance (often 2–6 months) — not lender fees but cash at closing.

DSCR vs hard money closing cost comparison

Factor	DSCR (30-year)	Hard money (6–12 mo)
Typical fee % of loan	2%–5%	2%–4% + points
Hold period	Years	Months
Annualized cost	Spread over long hold	Concentrated in short hold
Rate band (Jaken Finance Group)	5.75%–10.5%	8.99%–13.5% IO

Use DSCR closing cost calculator · DSCR loan process · fees schedule

Cash-out refi — net proceeds math

On a $350K appraised property with $220K existing payoff and 80% cash-out LTV:

Line	Amount
Max loan (80% × $350K)	$280,000
Payoff existing	−$220,000
Closing costs (~3%)	−$8,400
Net cash to you	~$51,600

Closing costs reduce proceeds — model on DSCR closing cost calculator.

Prepaid items at DSCR close

Prepaid	Typical
Hazard insurance (12 mo)	$1,200–$4,000+
Property tax escrow	2–6 months
Per-diem interest	Days 1–30

Jaken Finance Group DSCR rates 5.75%–10.5%. DSCR loan process · prepay penalties

Sample HUD-style fee lines on a $320K DSCR purchase

Line item	Typical range
Origination (1 point)	$3,200
Underwriting / processing	$1,495–$2,500
Appraisal (SFR with 1007)	$550–$750
Title insurance + settlement	$2,800–$4,200
Recording + transfer (varies by state)	$150–$3,500
Prepaid hazard (12 months)	$1,200–$2,400
Prepaid tax escrow (2–6 months)	$800–$4,000
Total friction (approx)	$10,000–$16,500 (3%–5%)

Run your address on the DSCR closing cost calculator. Cash-out refis add payoff statement fees and sometimes subordination if a second lien exists.

Where DSCR closing costs differ from hard money

Hard money at 8.99%–13.5% IO often bundles fewer third-party fees but charges draw inspection on rehab. DSCR at 5.75%–10.5% adds full title owner policy, 30-year doc prep, and longer rate lock windows. Model net proceeds on refi — closing costs come out of cash to borrower, not loan amount. DSCR prepay penalties · fees schedule · how much can you borrow

State-by-state closing cost variance

Transfer taxes and recording fees swing DSCR closing costs more than lender fees:

State	Transfer tax impact	Typical extra cost on $300K loan
Illinois (Cook County)	State + county stamps	$1,500–$3,000
Florida	Doc stamps on note (0.35%)	~$1,050 on $300K
Georgia	PT-61 transfer tax	$300–$600
Texas	No state transfer tax	Lower third-party total
Pennsylvania	1% state + local	$3,000+ on $300K

Budget state-specific costs on top of the 2%–5% lender fee range — the DSCR closing cost calculator helps but verify with your title company.

Purchase vs cash-out — fee differences

Fee line	Purchase	Cash-out refi
Origination	0–2 pts	0–2 pts
Appraisal	$550–$900	$550–$900
Title owner policy	Required	May be reissue discount
Payoff statement	N/A	$30–$100 per lien
Subordination	N/A	$200–$500 if 2nd lien
Prepaid escrows	2–6 mo tax + 12 mo insurance	Same

Cash-out refi on a BRRRR exit: closing costs reduce net cash extracted — model on Gary case study math.

Worked example — $275K DSCR purchase in Charlotte

Fee line	Amount
Origination (1 pt)	$2,337 (on $233,750 loan at 85% LTV)
Underwriting / processing	$1,495
Appraisal with 1007	$625
Title + settlement	$3,100
Recording	$128
Prepaid insurance (12 mo)	$1,680
Prepaid tax escrow (3 mo)	$1,125
Total cash at closing	~$10,490 (3.8% of loan)

Separate from down payment: 15% equity ($41,250) + $10,490 closing = ~$51,740 total cash to close on $275K purchase.

Can you roll closing costs into the DSCR loan?

Sometimes on rate-and-term refi or cash-out when LTV headroom allows — you cannot exceed program LTV caps (85% purchase, 80% cash-out select markets). Purchase files typically pay costs at closing from sponsor liquidity. Jaken Finance Group discloses all fees on the term sheet before processing at 5.75%–10.5%.

Seller credits and closing cost negotiation

Purchase DSCR — negotiate seller credit toward closing costs on the contract:

Credit	Effect	LTV impact
3% seller credit on $300K	$9,000 toward fees	Purchase price unchanged
Price reduction instead	Lower basis	May improve DSCR
Seller pays title	Saves $2K–$4K	Varies by state custom

Lenders cap seller credits at 3%–6% of purchase price depending on LTV — credits cannot exceed actual closing costs on some programs.

Lender credits vs points — rate trade-off

Structure	Rate	Origination	Net closing cost
Par pricing	7.25%	1 point	Moderate
Lender credit	7.625%	0 points	Lower cash at close
Buy-down	6.875%	2 points	Higher upfront

On long holds, buying down rate with extra points beats paying higher rate for 10 years — on BRRRR refi with 3-year hold before sale, lender credit may win.

Escrow waiver — cash flow vs closing table

Waiving tax and insurance escrow reduces prepaid cash at close by $3K–$8K:

Choice	Close table	Ongoing
With escrow	Higher prepaids	Lender pays tax/ins
Waive escrow	Lower prepaids	You pay tax/ins direct
Partial escrow	Split	Insurance escrow only

Waivers require 680+ credit and lower LTV on many DSCR programs — not automatic.

BRRRR cash-out — closing cost as % of extracted equity

Line	Amount
ARV after rehab	$380,000
Hard money payoff	$265,000
Max cash-out (80% LTV)	$304,000
Closing costs (3.2%)	−$9,728
Net cash extracted	$29,272
Closing cost as % of cash	33%

High closing cost % means wait for higher ARV or lower LTV refi — extracting $15K and paying $10K in fees is poor velocity.

Third-party fees you cannot negotiate away

Fee	Paid to	Negotiable?
Appraisal	AMC/appraiser	No
Title insurance	Title company	Sometimes reissue discount on refi
Recording	County	No
Flood cert	Vendor	No
Credit report	Bureau	No

Focus negotiation on origination points — not appraisal or recording.

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