Impound Account
A monthly escrow holding portion of the borrower's mortgage payment to fund property taxes and insurance when due. Some DSCR programs allow waived impounds at 75% LTV or below for a small fee.
Why it matters on a DSCR loan
Impounds smooth out the lumpy cost of annual tax and insurance bills, which many investors appreciate across a growing portfolio where due dates multiply. The tradeoff is cash drag: the lender collects several months of taxes and insurance at closing to seed the account, raising your cash-to-close. If your program allows waived impounds, weigh the fee against your own discipline — a missed property tax payment can trigger lender-placed remedies that cost far more than the impound ever would.
Related terms
Go deeper: read our full guide →
Run your own numbers, then get a real quote from 50+ wholesale DSCR lenders.
DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).