Most DSCR lenders are starting to apply looser pre-payment penalties as required by Ohio law (i.e. their interpretation that non-owner-occupied properties are within scope of the law). 

Good news: you have a shorter PPP

Bad news: you have a higher rate

Basic rule (may differ by lender):
– for 1-2 unit properties and loan amount <$111,000, then no PPP is allowed
– for 1-2 unit properties and loan amount >$111,000, then PPP is max 1% per year (for 3 years or 5 years per the lender)
– for 3-4 unit properties, normal PPP can be applied (e.g. declining 3-2-1 or 5-4-3-2-1).

If you would like a quote on a DSCR purchase or refinance loan in Ohio, please submit your project here:

https://belcanto-capital.com/investment-property-quote/