Financing a Wholesale-Assignment STR Deal With a DSCR Loan
Yes, a DSCR loan can finance a property you're buying through an assigned wholesale contract — you're still just the buyer at the closing table. What changes is what shows up on the settlement statement, how the assignment fee gets treated, and whether the title company is comfortable with a double close versus a simple assignment. None of that touches the DSCR ratio itself, but all of it can slow or snag the closing if you don't plan for it.
NightYield Editorial
STR-DSCR research & underwriting desk
Published 2026-07-07
What the lender actually sees
A wholesale assignment means the original contract holder (the wholesaler) never intends to close — they've contracted to buy the property from the seller, then assign their right to buy to you for a fee. By the time you're at the closing table with your DSCR loan, you're the buyer of record on either the assigned original contract or a fresh contract from a double close. The lender underwrites the property and the ratio exactly as it would any other purchase; it doesn't underwrite the chain of contracts that got you there.
What does matter to the lender is the purchase price it's lending against, and that's where the assignment fee shows up. If the assignment fee is paid to the wholesaler outside of the purchase price (common in a straight assignment), the lender usually only cares about the price on the contract it's financing. If the fee is baked into an inflated purchase price, that can distort the appraisal-versus-price comparison the loan is sized against.
Assignment vs. double close, and why title companies care
A simple assignment transfers the wholesaler's contract rights to you directly, and the assignment fee is typically disclosed on the closing statement as a fee paid to the wholesaler. A double close is two separate transactions — the wholesaler buys from the seller, then immediately sells to you — often used when the wholesaler doesn't want the assignment fee visible to the original seller, or when the original contract prohibits assignment outright.
- Simple assignment: one closing, assignment fee disclosed on the settlement statement, generally the more DSCR-friendly path
- Double close: two closings, sometimes same-day, occasionally requiring transactional funding to cover the wholesaler's brief ownership window
- Contracts that prohibit assignment: force a double close structure regardless of preference
Title companies vary widely in how comfortable they are with either structure, and some DSCR lenders will ask more questions — or require more documentation — around a double close than a straightforward purchase. This is a title and lender-comfort issue, not a DSCR ratio issue, but it's the piece that actually derails timelines.
What to line up before you accept the assignment
Confirm with the lender and title company, before you wire the assignment fee, whether they're comfortable financing an assigned contract or whether they'll require a double close. Get the assignment fee disclosed clearly in writing rather than folded silently into a higher purchase price — a clean paper trail is what keeps the appraisal and the loan-to-value calculation honest.
- Confirm the original purchase contract allows assignment, or plan for a double close if it doesn't.
- Get the assignment fee documented separately from the base purchase price.
- Confirm with your DSCR lender and title company that they'll finance an assigned or double-closed transaction before you're locked in.
- Order the appraisal early — if it comes in below the all-in price including the fee, the loan sizes to the lower number.
The honest bottom line
A DSCR loan doesn't care that a wholesaler was involved — it cares about the ratio, the appraisal, and clean title. The friction lives entirely in disclosure and structure: keep the assignment fee transparent, confirm the lender and title company can handle the specific structure (assignment or double close), and the DSCR side of the deal is no different than any other purchase.
Key takeaways
- A DSCR loan can finance a property acquired through an assigned wholesale contract — the lender underwrites the property and ratio, not the contract chain.
- The assignment fee needs clear disclosure; if it's folded into an inflated price, it can distort the appraisal-to-price comparison the loan sizes against.
- Simple assignment and double close are structurally different, and title companies and lenders vary in which they'll accommodate.
- Confirm lender and title comfort with the specific structure before wiring any assignment fee.