Due-on-Sale Clause
A clause allowing the lender to call the entire loan due if title transfers. Typically triggered when an investor deeds a property from personal name to LLC; managed by refinancing into a new DSCR loan to the LLC simultaneously.
Why it matters on a DSCR loan
This clause is why the popular advice to 'just quit-claim the property into your LLC' after closing carries real risk — the transfer can technically give the lender the right to call the loan. The cleaner path is to close in the LLC from the start or refinance into a DSCR loan made directly to the entity, which most DSCR programs handle routinely. Before moving title on any financed property, read your note and talk to your lender rather than assuming enforcement won't happen.
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).