Find answers to common questions about our financing programs, loan terms, draw process, qualification requirements, and working with Park Place Finance.
DSCR stands for Debt Service Coverage Ratio. It compares the income generated by a rental property with the property’s monthly debt obligations. Generally, the stronger the DSCR, the stronger the property’s ability to cover its monthly payment.
DSCR is calculated by comparing the property’s rental income with its principal, interest, taxes, insurance, and applicable association dues. A ratio above 1.0 generally indicates that rental income exceeds the property’s monthly obligations.
DSCR financing primarily evaluates the property’s rental income rather than relying on the borrower’s personal income. This can provide a more flexible qualification approach for real estate investors and self-employed borrowers.
Pricing and leverage depend on several factors, including credit profile, real estate investing experience, property details, project size, and loan term. Our team reviews the full scenario to determine the financing structure available for the project.
Renovation loans may be paid off early without a prepayment penalty. This allows borrowers to exit the loan once the project is complete and the payoff is ready.
Extensions may be available depending on the circumstances of the loan. Payment history, project status, remaining work, and overall loan performance may be reviewed when determining eligibility.
Certain loan scenarios may qualify for an exception when compensating factors are present, such as relevant investment experience, additional guarantors, stronger liquidity, or other strengths within the loan.
Yes. We work with investors across a wide range of experience levels, including borrowers completing their first investment project.
Our process is supported by an experienced lending team, established underwriting procedures, technology, and in-house resources designed to keep loans moving efficiently from submission through closing.
Draw requests are reviewed based on completed work and the approved project budget. Borrowers submit project progress for review, allowing our servicing team to process eligible draw funds efficiently.
Yes. Broker partnerships are an important part of our business. We work with brokers to review borrower scenarios, identify available financing options, and support their borrower relationships throughout the lending process.
Major factors can include the property’s DSCR, loan-to-value ratio, borrower credit profile, property characteristics, and current market conditions.
Rates vary based on market conditions and borrower qualifications. DSCR financing uses a different qualification approach because approval focuses more heavily on property rental performance than personal income.
Depending on the loan scenario and available program, DSCR financing may include fixed-rate structures, interest-only options, portfolio financing, LLC vesting, refinance options, and different prepayment structures.
Depending on the property and loan scenario, alternatives may include reducing leverage, adjusting the financing structure, buying down the rate, or evaluating another financing program.
Escrow requirements depend on the loan program. DSCR rental loans may require taxes and insurance to be escrowed, while bridge, renovation, and ground-up construction programs may have different requirements.
