Your rate is driven by your DSCR ratio, credit, LTV, property type, and prepay choice. Tell us about your deal and we'll price it with multiple investor programs so you can compare the options.
Last Updated: July 2026
NMLS #173855 | Equal Housing Opportunity
A DSCR loan rate is the interest rate on an investment-property mortgage that qualifies on the property's cash flow instead of your personal income. Because these are non-QM loans priced on the deal rather than a single published sheet, there is no one “DSCR rate” — your number is built from your DSCR ratio, loan-to-value (LTV), credit score, property type, and the prepayment penalty you choose.
Because a rental carries more risk than a home you live in, DSCR pricing often sits above a comparable owner-occupied conventional loan; how far above depends on the program and your file. The way to know your actual rate is to have your specific scenario priced across multiple investor programs, which is what we do. Below is how each factor moves your rate, and how to shop it well.
Understanding the factors that influence your rate helps you prepare for the best possible terms
Your FICO score is one of the biggest inputs to a DSCR quote. Programs price by score band, so moving into a higher band can improve your rate, and how large each step is depends on the program. Each program also sets its own minimum score and often ties its maximum loan-to-value to your score, which means a lower score can cost you leverage as well as pricing. If you are close to the next band, ask whether improving your score before you lock would change your quote.
The amount you borrow relative to the property value moves your rate. More equity means less risk for the investor, so a lower loan-to-value generally earns better pricing on the same program. Each program sets its own maximum LTV, and that maximum can change with your credit score, the property type and the loan purpose; cash-out refinances, for example, are often held to a tighter limit than purchases. Your quote shows the limit for your scenario.
Investors price some property types differently. Condos, non-warrantable condos, 2-4 unit and 5+ unit buildings, rural properties and short-term rentals can each carry their own pricing adjustments or eligibility limits, and which ones apply, and by how much, depends on the program. If your property is anything other than a standard single-family rental, ask how its type affects your quote.
The Debt Service Coverage Ratio measures how much of the full payment the qualifying rent covers. Each investor sets its own minimum DSCR; a 1.0 means the rent covers the full payment. On many programs a larger cushion above the minimum earns better pricing, while programs that accept a DSCR below 1.0 usually price for the shortfall or ask for compensating factors. The thresholds and adjustments are set by each program.
The structure you choose changes the quote. A fixed rate keeps the payment steady for the life of the loan. An adjustable-rate mortgage (ARM) fixes the rate for an initial period and then adjusts within its caps, and its start rate may differ from a comparable fixed rate. Where a program offers interest-only payments, the early payment drops, but the pricing and the payment after the interest-only period both need a close look. Available terms vary by program, so compare the structures side by side on your own quote.
Many DSCR programs let you choose the length of the prepayment penalty, and that choice usually changes the pricing: on programs that offer it, a longer penalty period can improve the rate, while a shorter period or no penalty keeps you flexible to sell or refinance. The options and their pricing differ by program, so ask to see your quote under each one and match the choice to how long you expect to hold the property.
DSCR pricing varies widely between investors. A little strategy protects your cash flow.
Why we don't post a rate sheet
A single “DSCR rate” on a web page would be misleading. Your real number depends on your DSCR ratio, credit, LTV, property type, loan purpose (purchase, refinance, or cash-out), and prepay selection — and it moves daily with the market. The honest way to find your rate is to price your actual scenario across multiple investors.
Get quotes on identical inputs — same LTV, prepay, and property type — so you are comparing rate to rate, not one lender's teaser against another's full package.
A lower rate bought with heavy discount points can cost more up front than it saves. Always look at the rate alongside points, lender fees, and the APR.
Where a program offers a choice, a longer prepayment penalty can improve the rate. If you plan to hold the property, compare the savings with the penalty; if you may sell or refinance soon, protect your flexibility.
Instead of applying to a dozen lenders yourself, we run one scenario past multiple investor programs and bring the options back side by side so you can compare them.
Want to know your actual rate? Let us shop your deal.
There is no single published DSCR rate. DSCR loans are non-QM investment loans priced per deal, so your rate is built from your DSCR ratio, credit score, LTV, property type, loan purpose, and prepayment penalty, and it moves with the broader mortgage market. The only way to know your true number is to have your specific scenario quoted, which we do with multiple investor programs.
Often, yes. A rental property carries more risk than an owner-occupied home and DSCR loans skip personal-income verification, so DSCR pricing frequently sits above a comparable owner-occupied conventional loan. How wide the gap is depends on the program, your credit, your down payment and the market that day, so compare actual quotes.
Focus on the factors you control: a higher credit score band, a lower loan-to-value, a property with a stronger DSCR, and a prepayment option that fits your hold plan, where the program offers a choice. Comparing quotes on identical terms and weighing rate against points and fees also protects your pricing.
Yes. DSCR pricing tracks the bond market and investor appetite, so quotes can move day to day and even intraday. A rate is not locked until you formally lock it, which is why a quote from last week is only a starting point.
On many programs, yes. Where a program offers a choice, the prepayment term is a pricing input: a longer penalty period can improve the rate, while a shorter one or no penalty buys flexibility. Ask to see the quote under each option and match the choice to how long you plan to hold the property.
Having one loan officer check your scenario against several programs means you do not have to apply at many lenders yourself. Credit scoring models also group mortgage inquiries made within a short shopping window, so comparing quotes in a focused period limits the effect on your score.
Fill out the quick form above and we'll run your deal past multiple investor programs and walk you through what comes back.