1031 + DSCR financing
Finance the replacement property without losing sight of the exchange strategy.
The exchange structure and the loan approval are separate—but the transaction works better when the teams coordinate early.
How the pieces fit
Two workstreams. One replacement-property closing.
Your qualified intermediary and independent advisors guide the exchange. The lender evaluates the investment-property financing request.
The exchange workstream
The QI and advisors address transfer, identification, exchange funds and tax reporting.
- Qualified intermediary coordination
- Identification and receipt requirements
- Independent tax and legal advice
The financing workstream
The lender reviews the borrower, property, cash flow, leverage and closing conditions.
- Market rent and expenses
- Appraisal, title and insurance
- Reserves and loan structure
The coordination point
The contract and closing plan must account for both workstreams.
- Replacement-property address
- Expected closing date
- Exchange equity and loan proceeds
Financing review
What a DSCR review generally considers
DSCR programs evaluate the subject investment property and the complete borrower and transaction profile.
Property cash flow
Expected or documented rent is compared with the qualifying housing expense.
- Rent documentation
- Principal and interest
- Taxes, insurance and HOA
Leverage and reserves
Loan-to-value, cash contribution and post-closing liquidity affect the structure.
- Purchase price and value
- Exchange equity applied
- Required reserves
Transaction eligibility
Property type, vesting, experience, credit profile and state availability all matter.
- Business-purpose use
- Eligible property type
- Complete underwriting review
Build the financing plan around the real transaction.
Share the exchange stage, proposed replacement-property direction and current assumptions with the 1031 Exchange DSCR Loan Desk.