Lender Credit
A credit issued by the lender at closing to offset closing costs, in exchange for a higher interest rate. The inverse of discount points.
Why it matters on a DSCR loan
Lender credits are the cash-preservation play: accepting a somewhat higher rate to reduce out-of-pocket closing costs, which appeals to investors who would rather keep capital for reserves or the next acquisition. The math hinges on your expected hold period — if you plan to refinance or sell within a few years, the upfront savings often beat the extra interest paid, especially given DSCR prepayment penalty windows. Compare the credit-versus-points tradeoff on the same Loan Estimate rather than across lenders, so you're comparing apples to apples.
Related terms
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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).