DSCR Loan Closing Costs: The Full Breakdown
DSCR closing costs typically fall into four buckets: lender fees (origination, underwriting, processing), third-party fees (appraisal, title, escrow/settlement), prepaid items (interim interest, initial escrow deposit), and government recording/transfer charges. Each is a separate line on the closing disclosure.
NightYield Editorial
STR-DSCR research & underwriting desk
Published 2026-07-10
The four buckets, and what's inside each
| Bucket | Typical line items |
|---|---|
| Lender fees | Origination fee/points, underwriting fee, processing fee |
| Third-party fees | Appraisal (including 1007 rent schedule), title search/insurance, settlement/closing agent fee, credit report |
| Prepaid items | Per-diem interim interest, initial escrow deposit (taxes/insurance), first-year hazard insurance premium |
| Government charges | Recording fees, transfer taxes where applicable |
Non-QM loans like DSCR often carry a slightly different fee schedule than agency conventional loans — underwriting fees can run higher because the file is manually reviewed rather than run through automated agency systems, and the appraisal typically includes the 1007 rent schedule specifically, not just a value opinion.
Where the biggest numbers actually come from
Points (origination fee, expressed as a percentage of loan amount) and the initial escrow deposit tend to be the two largest single figures on a DSCR closing disclosure, followed by title insurance on higher-value properties.
How points are priced against the rate is its own mechanic worth understanding before you decide to pay more upfront or accept a higher rate — covered in points and rate buydowns.
Reading the closing disclosure before you sign
The Closing Disclosure separates loan costs (Section A/B/C) from other costs (Section E/F/G/H) — taxes, prepaids, and initial escrow deposit sit in the "other costs" section, not the lender's fee section, which is a common point of confusion when comparing quotes across lenders.
Key takeaways
- DSCR closing costs split into lender fees, third-party fees, prepaid items, and government charges.
- Points and the initial escrow deposit are usually the two largest individual figures.
- Non-QM underwriting and appraisal fees can run higher than agency conventional due to manual review and the 1007 rent schedule.
- Compare closing disclosures section by section, not just by the total — prepaids and escrow don't reflect lender pricing.