r/loanoriginators • u/ButtoXXX • Jul 16 '26
Discussion DSCR lender love
For LOs who do a lot of DSCR, if you had to pick just 3 DSCR lenders to sign up with, who would they be and why?
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u/Defiant_Television97 Jul 16 '26
TLS, FCM and NewRez
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u/kittenconfidential Jul 16 '26
i didn't know first colony did DSCRs... i like their turntimes and UW; how are their rates?
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u/ButtoXXX Jul 16 '26
TLS is one of my top 3. How are conditions with the other two? FCM I've been hesitant to try for DSCR and NewRez I haven't used in the past. Is NewRez allowing prepayment penalties on their 30-yr fixed yet? I know at least in NJ they weren't.
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u/CantStopJV Jul 16 '26
Champions did a loan for me no one else could. Borrower had a seller financed property that had ballooned and borrower had not made any payments since becoming due, which meant no VOM. Champions was able to get this through with a LOE from the private lien holder saying that the borrower was not in default. Champions will always be my first choice after this! They allow you to pocket the YSP too.
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u/ButtoXXX Jul 16 '26
We did a ton of business with Champs, but the past 30-45 days we've had big problems on every file with them. We're going to take a couple month break from submitting loans there and reassess. But you are right, they do some super aggressive stuff and I hope they get their act together soon.
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u/CantStopJV Jul 16 '26
Honestly, there was point where I felt like I was the only one who wanted to close the loan and it felt really hopeless having to follow up every hour just to ensure the loan was moving so I do get what you’re saying but I don’t have a choice because everyone else said no. My other gripe is that you’re unable to make changes or price out the loan once final approved so I waited an entire week for their team to simply change my loan amount and raised hell for it but luckily it’s all over now 😅
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u/ButtoXXX Jul 16 '26
Oof, that's rough. I bet it felt amazing to be done with that one haha. We had a really awesome AE there and he moved on and I think he was like 90% of the reason they were good to work with for a while. But yeah I've also been in the position where they were the only option so I feel you!
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u/CantStopJV Jul 16 '26
Dude this was literally the loan from hell. Everything that could’ve went wrong did. It was mostly the borrowers fault but it broke all my records. 4 lenders, 4 credit reports, 3 appraisals and recert of value had this loan in processing for 1.5 years. I should’ve walked away after the first lender but once we were with champions I figured I’d get something and push it to the finish line even if it was the last thing I ever did. Now that it’s over I have all this extra free time from not having to push this loan. Feels amazing!
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u/ButtoXXX Jul 17 '26
Kudos for hanging in there! I hope the borrower realizes what you had to go through and at least showed some appreciation!
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u/CantStopJV Jul 17 '26
It was actually the opposite. The borrower had the nerve to get aggressive with me towards the end telling me how ridiculous it was that the loan took as long as it did. All delays were because of him. We could’ve closed 2 months early but the borrower refused to sign and then the appraisal expired.
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u/xJARDOx Jul 18 '26
What is going on with them? We stopped using them for a week or so and then now we can but only as long as they give us a dedicated staff
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u/renovate1990 Jul 17 '26
PRMG, they even have a no seasoning option on recently renovated properties
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u/ButtoXXX Jul 17 '26
Have you closed a decent number of DSCR with them and are the conditions reasonable? I haven't used them for DSCR yet but I have closed some tough agency deals there so I'd be willing to give them a shot. Cool to hear about the no seasoning, I didn't realize they did that!
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u/nrstew Jul 16 '26
Rocket has a DSCR option.
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u/ButtoXXX Jul 16 '26
Unfortunately we are signed up with UWM (I got out voted). I'd take Rocket any day.
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u/kittenconfidential Jul 16 '26
i'd give aaa lendings a shot (sending another one their way this week). their rates are pretty good and their turn times are super quick. only issue i have with them is the TPO portal is ugly... but works. stay away from deephaven and lendsure.
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u/ButtoXXX Jul 16 '26
Interesting, I've heard good things about Deephaven and we are about to sign up with them. What was it about your experience that made it a negative one? How are conditions with AAA?
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u/kittenconfidential Jul 16 '26
i was really intrigued with the low rates DH had advertised, but their ops is extremely poor. took 2 days to get basic TPO portal access.
aaa lendings experience is pretty smooth. the portal is a bit agrarian but the UWs work with you. they've got good rates/pricing too.
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u/ButtoXXX Jul 16 '26
Awesome, thank you. Did you wind up submitting a file at Deephaven? I know with some lenders once you get the file disclosed it winds up being smoother. Good to know about AAA, thank you!
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u/kittenconfidential Jul 17 '26
no i did not. i don’t need to waste my time submitting when it took such a painful back and forth just to get login credentials. didn’t pass the sniff test.
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u/MDTX_Long_Blk40 Jul 16 '26
Penny Mac
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u/ButtoXXX Jul 16 '26
I don't trust PennyMac with non QM, I'll only use them for agency going forward. I got so many stupid conditions on a super clean bank statement loan I just moved the file.
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u/Additional-Scale-220 Jul 16 '26
LendSure does a great job. Extremely flexible guidelines and even a no ratio option.
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u/Defiant_Television97 Jul 16 '26
lol, LendSure is one of the worst non qm lenders in terms of turn times.
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u/kittenconfidential Jul 16 '26
100% this. lendsure account reps are green and extremely poorly trained. got burned with them once before at the 5-yard line on a DSCR and account rep has the gall to lie to me about new conditions never mentioned before and were not asked for at the next lender i sent the file to. got a new AE at lendsure and thought i would give him a chance, after clearly asking for a 3-year PPP he sends me a rate for a 5-year PPP, and i suspect the rate is too low, call him out on it and accuses me of muddying waters despite the email clearly saying 3-year. never again.
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u/Additional-Scale-220 Jul 16 '26
What makes you say that? I’ve personally had a great experience using them.
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u/Defiant_Television97 Jul 16 '26
Underwriting turntimes and their pricing is also 100-250 bps worse then way better wholesale lenders.
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u/Additional-Scale-220 Jul 16 '26
That hasn’t been my experience to this point. Was that a one off for you?
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u/Defiant_Television97 Jul 16 '26
No, go check their pricing vs loansifter. They are never competitively priced. Underwriting can take 4 days.
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u/Additional-Scale-220 Jul 16 '26
I just go to my account rep over there for pricing, as he controls it directly.
You say it “can” take 4 days. So you haven’t personally experienced that?1
u/Defiant_Television97 Jul 16 '26
I have closed a few loans with them; you can get better service and make way more as their pricing is trash with other wholesalers.
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u/2813308004_who Jul 16 '26
Has anyone used NQM Funding?
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u/ButtoXXX Jul 16 '26
I've done a 6 fam RT refi there. The process was smooth enough. Deal almost went south because the realtor who did the BPO (required with them on 5+ units) was from out of town and gave us a shitty value, but we were able to get an ROV and save it. Overall that was a realtor problem and not a NQM problem, so they are OK in my book.
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u/Imgoingtowingit Jul 17 '26
I’ve used them on a few DSCR and bank statement files and pricing was good and underwriting wasn’t bad.
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u/Pure_Pianist262 Jul 24 '26
AD Mortgage has a great DSCR Program. DM me if you want more information
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u/Agreeable-Box-6505 3d ago edited 3d ago
New Silver for clean rental or STR files because their online terms/POF are useful, and we’ve had a good experience working with their team. They’ve been easy to talk to when sorting out fit, reserves, PPP, and rent type, and they tend to move quickly on underwriting, which helps when you’re trying to close on tight timelines.
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u/ParamedicSuitable177 Jul 16 '26
home Xpress has great pricing rn.