DSCR Flow Exit Training

Compliance Basics

The Rules of the Road for DSCR Flow Affiliates

DSCR Flow Affiliate Training - Core Module 2

The Business Purpose Exemption

The entire DSCR Flow affiliate model is built on a critical legal distinction:

We ONLY deal with Business Purpose Loans

Consumer Loans

Primary residences

  • Subject to RESPA & SAFE Act
  • Complex regulations
  • Extensive licensing required

Business Purpose Loans

Investment properties

  • Exempt from many regulations
  • Simple referral model works
  • This is our lane!

Our Two Unbreakable Rules

To maintain the business purpose exemption, we have two non-negotiable rules:

No Primary Residences

We cannot and will not finance a borrower's primary home. The property must be for investment purposes only.

Entity Required

All loans must close in the name of an LLC or business entity. This reinforces the business purpose nature.

Your Role: The Do's and Don'ts

As a Basic Affiliate, you are a connector, not a loan officer. Think of yourself as a scout who finds opportunities and makes introductions.

DO

  • Share your unique affiliate link
  • Educate your audience about DSCR loans
  • Use our approved marketing materials
  • Explain what a DSCR loan is
  • Make warm introductions

DON'T

  • NEVER take a loan application
  • NEVER negotiate rates or terms
  • NEVER give specific loan advice
  • NEVER call yourself a loan officer
  • NEVER promise approval

State-Specific Rules

While business purpose loans are exempt from many federal rules, some states have their own requirements. We've organized states into tiers:

🟢

Full Program

38 states
All features available

🟡

Referral Only

MI, MN, NE, NC, VT
Link sharing only

🔴

Excluded

CA, AZ, NV, ID, ND, SD, AK
Not available

Your affiliate portal is automatically configured based on your state.

LLC-Only States

In these 6 states, all borrowers must close in an LLC or business entity name. This is already a DSCR Flow requirement, but it's especially important here:

UT
Utah
OR
Oregon
WA
Washington
VA
Virginia
KS
Kansas
MA
Massachusetts

Pro Tip: If your borrower doesn't have an LLC, they can usually form one quickly and affordably.

Stay in Your Lane, Succeed with DSCR Flow

Compliance is simple: educate and refer. Don't act like a lender.

Remember:

  • Investment properties only - never primary residences
  • All loans close in an LLC or business entity
  • You're a connector, not a loan officer
  • Share your link, educate, and let us handle the rest