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By Robin Simon, President, Harpoon Capital · About · LinkedIn · Author, The Book on DSCR Loans (Available on Amazon)
Ohio and Pennsylvania are the two states that restrict prepayment penalties on DSCR Loans using a dollar-amount threshold that is updated every year for inflation. For 2026, Ohio’s threshold rises to $116,356 and Pennsylvania’s rises to $329,411. If a DSCR Loan on a one- or two-unit rental property falls below these amounts, Ohio limits the prepayment penalty that can be charged and Pennsylvania prohibits one entirely, so these updates matter for real estate investors, brokers and lenders working in either state.
Below, we break down what changed for 2026 in each state. For the prepayment penalty rules in every state, see our comprehensive 50-state (+DC) guide to prepayment penalty rules.
In the state of Ohio, one-unit (SFR) and two-unit (duplex) properties secured by DSCR Loans with a balance under the annual threshold are limited to maximum fee of 1% and a maximum duration of five years. For 2026, the threshold has been increased to $116,356. This is increased from $112,957 in 2025, an approximately 3% increase. For rental properties with three units or more, and for DSCR Loans securing one- or two-unit properties with balances over the new threshold, there should generally be no additional prepayment restrictions from a DSCR Lender's general options.
In the state (or technically, commonwealth) of Pennsylvania, one-unit (SFR) and two-unit (duplex) properties secured by DSCR Loans with a balance under the annual threshold are completely restricted from having prepayment penalties applied. For 2026, the threshold has been increased to $329,411. This is increased from $319,777 in 2025, an 3.01% increase. For rental properties with three units or more, and for DSCR Loans securing one- or two-unit properties with balances over the new threshold, there should generally be no additional prepayment restrictions from a DSCR Lender's general options.