DSCR Loan Rates
There's no single "DSCR rate" — your rate is built from your deal. Here are the five factors that set it, and how to push it lower. For an actual number on your property, request a quote.
What drives your DSCR rate
Your DSCR
The single biggest lever. 1.25+ prices best; 1.00–1.24 is standard; below 1.0 (low-DSCR programs) carries a premium.
Loan-to-value (LTV)
Lower leverage = lower rate. A 65% LTV loan prices meaningfully better than an 80% LTV loan, all else equal.
Credit score
FICO tiers your rate. 720+ earns the best pricing; rates step up as scores drop toward the program minimum.
Property & purpose
Property type (SFR vs 2–4 unit vs condo vs STR), occupancy, and whether it’s a purchase, rate/term, or cash-out refinance all shift pricing.
Points & prepay
You can buy the rate down with points, and a longer prepayment penalty typically lowers the rate. The structure is a trade-off you choose.
How DSCR rates compare
Expect DSCR rates to sit somewhat above owner-occupied conventional mortgage rates. That gap is the cost of three things a conventional loan won't give you: no income documentation, no cap on the number of financed properties, and the ability to vest title in an LLC. For most serious investors that flexibility is worth more than chasing the absolute lowest rate — especially since the property's rent, not your tax returns, is doing the qualifying.
The interplay of rate, points, and prepayment penalty matters as much as the headline rate. A slightly higher rate with no prepay can beat a lower rate locked behind a stiff five-year penalty if you plan to refinance soon. Always compare total cost over your hold, and model the payment in our DSCR calculator before you commit.
Frequently asked questions
What are current DSCR loan rates?
DSCR rates move with the broader rate market and are typically a bit higher than owner-occupied conventional mortgage rates, reflecting that they’re business-purpose investment loans. Rather than quote a number that goes stale, we price your specific scenario — your DSCR, LTV, FICO, and property determine the rate. Request a quote for a current, real figure.
Why are DSCR rates higher than my primary-home mortgage?
DSCR loans are business-purpose loans on investment property, which carry more risk than an owner-occupied home and don’t qualify for the same government-backed pricing. The trade-off is that you qualify on the property’s rent with no income docs and can vest in an LLC — flexibility a conventional mortgage doesn’t offer.
How can I get a lower DSCR rate?
Increase your DSCR (more rent or a smaller loan), lower your LTV with a bigger down payment, raise your credit score, buy the rate down with points, or accept a longer prepayment penalty. Each is a lever you can pull to improve pricing.
Does the prepayment penalty affect my rate?
Yes. A longer step-down prepayment penalty generally lowers your rate because it gives the lender more assurance the loan stays on the books. Buying the prepay down or out raises the rate. Match the structure to how long you plan to hold.
Ready for a real quote?
Tell us about the deal and get terms back fast — no obligation, no hard credit pull to start.