A Connecticut DSCR loan is business-purpose financing on a 1-4 family rental, secured by a mortgage and foreclosed through the courts, either by strict foreclosure or by sale under Connecticut General Statutes chapter 846.
Connecticut is a court-foreclosure state that also uses strict foreclosure, where title can pass to the lender without an auction. Its deposit rules change with the tenant's age, which matters if you rent to older tenants.
If a Connecticut rental is a condo, the building matters as much as the unit; see how lenders review condo projects.
How are rental property loans foreclosed in Connecticut?
Connecticut foreclosures are by court judgment, either strict foreclosure or foreclosure by sale, under chapter 846 of the General Statutes; no non-judicial power-of-sale procedure was identified.
- Conn. Gen. Stat. 49-24 is headed: Court may foreclose lien or mortgage on land by sale or market sale.
- Conn. Gen. Stat. 49-1 provides that the foreclosure of a mortgage is a bar to any further action upon the mortgage debt.
Exception: Which form of judgment a court enters depends on the case. A Connecticut attorney can speak to a specific property.
According to Conn. Gen. Stat. chapter 846, Connecticut General Assembly, 2025 revision, as of October 2026.
Does Connecticut's conveyance tax apply to a mortgage?
No. The Department of Revenue Services conveyance tax return lists an instrument that secures a debt, such as a mortgage deed, as exempt from the real estate conveyance tax.
- The conveyance tax applies to deeds that transfer real property.
- DRS Form OP-236 instructions list the exemption: the instrument secures a debt or other obligation.
Exception: Town clerk recording fees still apply and are not covered here.
According to DRS Form OP-236 instructions (Rev. 10/23), Connecticut Department of Revenue Services, as of October 2026.
What Connecticut landlord rules affect a rental property's numbers?
Connecticut caps a security deposit at two months' rent, or one month's rent if the tenant is 62 or older, and requires its return within 21 days after the tenancy ends or 15 days after receiving a forwarding address, whichever is later, under Conn. Gen. Stat. 47a-21.
| Tenant | Maximum deposit (47a-21) |
|---|---|
| Under 62 | 2 months' rent |
| 62 or older | 1 month's rent |
Exception: Section 47a-21 also sets interest and escrow rules. Read it before collecting a deposit.
According to Conn. Gen. Stat. chapter 831, Connecticut General Assembly, 2025 revision, as of October 2026.
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Disclaimer
This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.