5-4-3-2-1 Step-Down Prepayment Penalty
Bottom Line Up Front (BLUF): Business-purpose DSCR loans are securitized in institutional Non-QM bond pools that rely on predictable duration. A 5-4-3-2-1 step-down prepayment penalty protects investor bond yield for 60 months while stepping down 1% each anniversary.
Underwriting Formula / Rule
Exit Prepay Fee = Remaining Principal Balance × Active Year Step-Down % (5%, 4%, 3%, 2%, or 1%).
Wholesale Shelf Benchmark
Standard on long-term buy-and-hold DSCR loans; 3-2-1, 2-1, and 1-year options available for shorter horizons.
Frequently Asked Underwriting Questions
Can I choose a 3-2-1 or No-Prepay DSCR structure instead?
Yes. Loan Daddy LLC shops 5-year, 3-year, 2-year, 1-year, and 0-prepay wholesale shelves side by side.
Arranged by Loan Daddy LLC (NMLS #2827624 · (480) 485-1229 · quotes@loandaddy.ai). Business-purpose investment properties only.