Four loans for one investor, the last at 0.758 DSCR — Dover, NJ
Reviewed by Dominick Prevete, Founder & CEO, National Loan Provider31 years in real estate finance
In 2025, Dominick Prevete of National Loan Provider placed four loans for one investor in Dover, New Jersey, $1,955,250 across 10 units. The fourth was a December single-family purchase that closed at 0.758 coverage on a low-DSCR program with no prepayment penalty, because the investor plans to subdivide the lot and sell the house.
| Funded | Property | Purpose | Program & term | Loan | LTV | DSCR | Rate at closing | Prepayment |
|---|---|---|---|---|---|---|---|---|
| March 2025 | Dover, NJ · 2-unit | Cash-out refinance | DSCR · 5/6 ARM | $518,000 | 70% | 1.445 | 6.999% | 3-year declining |
| April 2025 | Dover, NJ · 3-unit | Purchase | DSCR · 5/6 ARM | $612,000 | 80% | 1.584 | 6.999% | 3-year declining |
| August 2025 | Dover, NJ · 4-unit | Cash-out refinance | DSCR · 5/6 ARM | $536,250 | 65% | 1.521 | 6.874% | 3-year declining |
| December 2025 | Dover, NJ · Single-family | Purchase | DSCR · 30-year fixed | $289,000 | 75% | 0.758 | 6.999% | None |
What were the first three loans?
The investor's 2025 in Dover, New Jersey started with a 2-unit cash-out refinance in March, then a 3-unit purchase at 80% LTV in April and a 4-unit cash-out refinance in August. All three were standard DSCR loans placed by National Loan Provider: 5/6 ARMs with coverage between 1.445 and 1.584 and a 3-year declining prepayment penalty.
Why buy a rental that doesn't cover its payment?
In December the investor bought a single-family house in Dover with a plan: subdivide a lot off the back of the property, then sell the house. On rent alone, the house came in at 0.758 coverage, meaning the rent covered about three-quarters of the full monthly payment. The rent didn't need to carry the loan for thirty years. The financing needed to close now and leave him free to sell once the subdivision was done.
Can you get a DSCR loan below 1.0?
Yes, on a low-DSCR program, which is built for files where the rent doesn't fully cover the payment. Dominick Prevete placed the Dover purchase on one: a $289,000 30-year fixed loan at 75% LTV and 6.999%, with no prepayment penalty. For a short hold ending in a sale, that was the structure that fit.
What was the result?
The purchase closed on December 24, 2025. It was the investor's fourth Dover closing of the year, bringing the total to 10 units and $1,955,250 across four loans.
What should you do if your DSCR comes in below 1.0?
It isn't automatically a dead end. When the plan is a short hold, such as a subdivision, a value-add or a planned sale, a low-DSCR program with no prepayment penalty can fit better than forcing the property into a standard DSCR test. Run the numbers in the DSCR calculator first.
Related: No-ratio and low-DSCR loansDSCR calculatorClosed transactions
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