- Griffin Funding's planning range for DSCR closing costs is 2–5% of the loan, or $6,000–$15,000 on $300,000. FundLoans caps points and fees at 5%.
- Lender fees come as points (Griffin says many lenders charge 1–2% of the loan) or a flat fee, such as Griffin's $1,990 for processing and underwriting.
- An appraisal with a rent schedule ran about $700–$1,305 for a single-family home on one 2026 appraisal fee schedule; the 1007 rent schedule itself was a $150 add-on.
- Title premiums and loan taxes can be set by the state. In Florida, a new $300,000 mortgage carries $1,650 in documentary stamp and intangible taxes.
- Our Florida estimate came to $11,825, about 3.9% of the loan, before settlement and recording fees. Prepaid interest, insurance and the escrow deposit were $4,455 of it.
DSCR loan closing costs typically run 2–5% of the loan amount, the planning range Griffin Funding publishes, or $6,000–$15,000 on a $300,000 loan. DSCR (debt service coverage ratio) — the property's monthly rent divided by its monthly payment — decides whether the loan qualifies; closing costs decide how much cash you bring on top of the down payment. They fall into four groups: what the lender charges, what third parties charge, what the state and county charge, and prepaid items that fund your first interest, tax and insurance payments. Every figure here comes from a published lender page, fee schedule or statute, with dates.
One difference from a home loan: DSCR loans are business-purpose credit for investment property you won't live in, and RESPA and Regulation Z, the rules behind the Loan Estimate and Closing Disclosure on consumer mortgages, exempt business-purpose loans. You may get a term sheet and a settlement statement instead. Ask for an itemized fee sheet with your terms, and check it line by line against the settlement statement before you sign.
Four buckets of closing costs, and who sets each
| Bucket | Typical lines | Set by | Room to move |
|---|---|---|---|
| Lender | Origination points or a flat fee, underwriting, processing, discount points, lock extensions | The lender | The most: points trade against rate |
| Third party | Appraisal and rent schedule, title search and insurance, settlement fee, credit report, flood certification | Vendors; in some states, title premiums are set by rule | Limited, and none on a state-set premium |
| Government | Recording fees, taxes on the mortgage, transfer taxes on the deed | State and county | None, though the contract can shift who pays a transfer tax |
| Prepaids and escrow | Interest to month-end, first-year insurance, initial tax and insurance deposits | Your closing date, policy and tax bill | Timing only; these are your own costs paid early |
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Lender fees: points or a flat fee, under a 5% ceiling
Lenders charge for making the loan in one of two ways. Most charge origination as points, where one point is 1% of the loan; Griffin Funding says many lenders charge 1–2% of the loan amount. Some charge a flat fee instead. Griffin's own is $795 for processing plus $1,195 for underwriting, $1,990 regardless of loan size. On a $300,000 loan, 1 point is $3,000 and 2 points are $6,000. On a $750,000 loan, 1 point is $7,500, which is where a flat fee starts to matter.
Discount points are separate from origination. They buy the rate down, and Easy Street, for one, offers zero-point options alongside buydowns. Whether a buydown pays depends on how long you keep the loan; our rates guide works the break-even month. FundLoans' 2026 matrix caps total points and fees at 5% of the loan, a useful ceiling to hold any fee sheet against.
- Lock length and extensions. On Spring EQ's October 23, 2026 wholesale DSCR sheet, a 45-day lock costs 0.125 points more than a 30-day lock and a 60-day lock 0.250 more. Extensions cost 2 basis points a day, so 15 extra days on $300,000 is $900. Match the lock to the contract date.
- Escrow waivers. Skipping a tax and insurance escrow account costs 0.125–0.375 points on the same sheet, or $375–$1,125 on $300,000. eLEND allows a waiver only with 720+ credit and 12 months of reserves, and it always escrows flood insurance.
- Underwriting, processing and document fees. Ask whether they're included in the origination charge or added on top, and get the answer in dollars.
Appraisal and rent schedule: about $700–$1,300 for a single-family rental
A DSCR appraisal does two jobs: it values the property and estimates market rent, the number that often becomes the income in your ratio. eLEND's matrix, for example, calls for a Fannie Mae 1004 plus a 1007 rent schedule for a single-family home, a 1025 for two to four units, and a 1073 plus a 1007 for a condo. One appraisal management company's fee schedule, effective January 1, 2026 and posted by a mortgage lender, shows how the price varies by state:
| State | 1004 single-family | 1007 rent schedule | Single-family total | 1025 two- to four-unit |
|---|---|---|---|---|
| Florida | $595 | $150 | $745 | $770 |
| Texas | $660 | $150 | $810 | $835 |
| Georgia | $630 | $150 | $780 | $805 |
| Ohio | $625 | $150 | $775 | $800 |
| Range across all states | $550–$1,155 | $150 | $700–$1,305 | $725–$1,330 |
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Three things can add to that. A 2–4 unit file can call for an operating income statement (Form 216), a $150 add-on on the same schedule. A review can be required: eLEND orders a collateral desk analysis from Clear Capital when the appraisal's automated risk score is above 2.5 or missing, and a second appraisal when the seller bought the property within 90 days and the price is more than 10% higher, or within 91–180 days and more than 20% higher. And a short-term rental may need a separate STR income report. Going the other way, Angel Oak can replace the 1007 with an automated rental valuation, limited to one-unit homes at up to 75% LTV.
Ask when the appraisal fee is due. If it's collected when the report is ordered, you pay it whether or not the loan closes, which is one more reason to confirm eligibility and run the ratio in the DSCR calculator first.
Title and settlement: in some states, the premium is set by rule
Lenders require a lender's title insurance policy, which protects their lien. On a purchase you'll usually buy an owner's policy too, which protects you; who pays for it depends on local custom and your contract. Florida makes a clean example because the state sets the premium by rule (Florida Administrative Code 69O-186.003): $5.75 per $1,000 of coverage up to $100,000, plus $5.00 per $1,000 from $100,000 to $1 million. A lender's policy issued together with the owner's policy costs a minimum of $25 for coverage up to the owner's amount.
| Policy | Calculation | Premium |
|---|---|---|
| Owner's policy, $375,000 purchase | $575 + 275 × $5.00 | $1,950 |
| Lender's policy, $300,000, issued with the owner's policy | Simultaneous-issue minimum | $25 |
| Lender's policy, $300,000 refinance, original rate | $575 + 200 × $5.00 | $1,575 |
| Lender's policy, $300,000 refinance, reissue rate | $330 + 200 × $3.00 | $930 |
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The reissue rate, $3.30 per $1,000 up to $100,000 and $3.00 per $1,000 above it, applies on a refinance when an earlier owner's policy insured you and the title agent and underwriter can confirm it. On a $300,000 refinance that's $645 saved for asking. Where premiums aren't set by the state, they vary by company, so get the title quote early. Settlement fees, the title search and endorsements are separate charges either way.
State and county taxes on the loan itself
Some states tax the mortgage, and the tax grows with the loan. Florida charges documentary stamp tax of 35 cents per $100 on the note and mortgage (section 201.08, Florida Statutes) and a one-time intangible tax of 2 mills, or 0.2%, on loans secured by Florida real estate (section 199.133). On a $300,000 loan that's $1,050 plus $600, or $1,650, before recording fees. Other states charge mortgage recording taxes, deed transfer taxes, or neither. Check the Florida or Texas page for those markets, and ask the title company for the exact figure anywhere else.
Prepaids and the escrow deposit: your own money, collected early
Prepaids aren't fees. They're your first interest, insurance and tax payments, collected at closing, and they can still run to several thousand dollars.
- Prepaid interest. Mortgage interest is paid in arrears, so the lender collects interest from the closing date to the end of that month. The daily figure is loan × rate ÷ 365: $59.59 a day on $300,000 at 7.25%. Close on the 20th of a 30-day month and you prepay 11 days, $655; close on the 28th and it's 3 days, $179. Some lenders divide by 360, which raises the daily figure slightly.
- First-year insurance. Expect to pay the landlord policy's first-year premium at or before closing.
- Initial escrow deposit. If the lender escrows taxes and insurance, it collects enough at closing to pay the next bills on time, plus a cushion. On consumer mortgages, RESPA caps that cushion at one-sixth of a year's escrow payments, about two months. Business-purpose loans are exempt from RESPA, so the lender's own policy sets the deposit; ask for it in writing.
Prepayment penalties show up at closing twice
First, when you choose the structure. Shorter penalties cost more in rate or points. On Spring EQ's October 23, 2026 wholesale sheet, the price difference against a 5-year step-down was 0.625 points for a 3-year penalty, 1.250 points for a 1-year penalty and 2.625 points for none: $1,875, $3,750 and $7,875 on a $300,000 loan. The lender can deliver the same trade as a higher rate instead of points. Our prepayment penalty guide shows how to choose by hold period.
Second, when you refinance. The old loan's penalty is part of its payoff, so it comes out of the new loan's proceeds at closing. Refinance a $280,000 balance in year three of a 5-4-3-2-1 penalty and $8,400 goes to the old lender before you see any cash. Easy Street measures cash-out proceeds after the payoff, closing costs and escrows, so a refinance that looks like cash-out on paper can end up as a rate-and-term deal.
Worked estimate: a $375,000 Florida rental with a $300,000 DSCR loan
Assumptions: 20% down, a 30-year fixed loan at an illustrative 7.25%, 1 point of origination, closing on the 20th of a 30-day month, $5,400 a year in property taxes and a $2,100 landlord policy. The escrow line assumes the lender collects 3 months of taxes and 2 months of insurance; your lender's figure depends on its policy and your tax due dates.
| Line | Basis | Amount |
|---|---|---|
| Origination | 1 point on $300,000 | $3,000 |
| Appraisal with rent schedule | 1004 + 1007, Florida, 2026 schedule | $745 |
| Owner's title policy | Florida promulgated rate on $375,000 | $1,950 |
| Lender's title policy | Simultaneous issue | $25 |
| Documentary stamp tax | $0.35 per $100 of the loan | $1,050 |
| Intangible tax | 0.2% of the loan | $600 |
| Fees and taxes subtotal | $7,370 | |
| Prepaid interest | 11 days × $59.59 | $655 |
| First-year insurance | Landlord policy | $2,100 |
| Initial escrow deposit | 3 months of taxes ($1,350) + 2 months of insurance ($350) | $1,700 |
| Prepaids subtotal | $4,455 | |
| Total closing costs | 3.9% of the loan | $11,825 |
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That lands inside Griffin's 2–5% range, and the mix is the lesson: about 38% of the total is prepaids and escrow, your own taxes, insurance and interest paid early. Swap the 1-point origination for a $1,990 flat fee and the total drops to $10,815. If the seller pays the owner's policy by local custom or contract, take off another $1,950.
Add the $75,000 down payment and you need about $86,825 at the closing table, plus settlement and recording fees. Reserves come on top. At $2,672 a month in PITIA ($2,047 principal and interest plus $625 taxes and insurance), 6 months is $16,032 that has to remain in your accounts afterward. The property needs $2,672 of rent to reach a 1.00 DSCR; at $2,900 it's 1.09. Our down payment guide covers how the loan amount itself is set.
Six ways to lower the cash you bring
- Negotiate a seller credit. Angel Oak allows seller concessions up to 6%, and an OfferMarket guide updated July 2026 puts typical DSCR limits at 3–6% of the lower of price and appraised value. A credit can pay closing costs, prepaids and points, not the down payment, and only on a purchase. A 3% credit on $375,000 is $11,250, nearly all of the estimate above.
- Take a lender credit. A slightly higher rate can fund part of your costs. It raises the payment, so check that the DSCR still clears the minimum.
- Ask how origination is charged. A flat fee beats points as loans get larger. On a small loan, points can come out ahead if the rate is better. Look at the dollars, not the format.
- Ask for the reissue rate on a refinance. In Florida it cut the lender's policy from $1,575 to $930 on $300,000.
- Pick the closing date with prepaid interest in mind, and lock to match. A late-month closing means less prepaid interest; a lock that expires before closing means extension fees.
- Roll costs into a refinance. On a refinance, closing costs can come out of the new loan's proceeds, up to the LTV cap. On a purchase the loan is capped as a share of the price, so closing costs are paid in cash or with credits.
How points, fees and prepaid interest are treated for taxes on a rental is a question for your CPA, not your lender.