Your rate is driven by your DSCR ratio, credit, LTV, property type, and prepay choice. Tell us about your deal and we'll shop 40+ lenders for your best rate.
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.
DSCR rates generally run a bit higher than a primary-residence conventional loan because rental properties carry more risk, but they remain true mortgage rates — far below hard-money or personal-loan pricing. The best way to know your actual rate is to have your specific scenario priced across multiple investor programs, which is exactly 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 most significant factors in determining your DSCR loan rate. Borrowers with scores of 740 or higher typically qualify for the best pricing, meaningfully better than borrowers with scores in the 660-680 range. Most DSCR lenders require a minimum score of 620, though some programs accept scores as low as 600 with compensating factors like higher down payments or stronger DSCR ratios. Improving your credit score before applying can translate to real savings over the life of your loan.
The amount you borrow relative to the property value directly affects your rate. Lower LTV loans (more equity or larger down payments) receive better pricing because they represent less risk to lenders. A loan at 65% LTV will typically price better than a loan at 80% LTV. Most DSCR programs cap LTV at 80%, though some lenders offer up to 85% for well-qualified borrowers. Cash-out refinances often have slightly lower maximum LTVs than purchase transactions.
Different property types carry different risk profiles, which affects pricing. Single-family homes typically receive the best rates, followed by 2-4 unit properties. Condos, townhomes, and larger multifamily properties (5+ units) may see modest upward rate adjustments. Short-term rental properties (Airbnb/VRBO) often have additional pricing adjustments due to their income volatility compared to traditional long-term rentals. Rural properties and non-warrantable condos may also carry rate premiums.
The Debt Service Coverage Ratio measures how much rental income covers your mortgage payment. A DSCR of 1.25 (rent is 125% of the payment) is considered strong and will earn better rates. Most lenders prefer a minimum DSCR of 1.0, meaning the rent covers the full payment. Some programs accept DSCR below 1.0 with additional pricing adjustments or compensating factors. Properties with higher DSCR ratios demonstrate stronger cash flow, reducing lender risk and often resulting in better pricing.
DSCR loans are available in various terms, each with different rate implications. The 30-year fixed is the most popular option, offering payment stability for long-term investors. Adjustable-rate mortgages (ARMs) like the 5/6 or 7/6 ARM typically carry lower initial rates than a comparable fixed loan, making them attractive for investors planning to sell or refinance within a few years. Interest-only payment options are also available, which can maximize cash flow but may come with slightly higher rates.
One of the most impactful rate factors is your choice of prepayment penalty. DSCR loans typically offer several options: a 5-year prepay penalty provides the lowest rate (meaningfully lower than choosing no prepay), while a 3-year prepay offers a middle ground. Choosing no prepayment penalty gives you maximum flexibility but results in the highest rate. For buy-and-hold investors, accepting a longer prepay period can significantly reduce your interest rate and monthly payment. Consider your investment timeline carefully when selecting this option.
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.
Longer prepayment penalties buy a lower rate. If you plan to hold the property, that trade often pays off; if you may sell or refinance soon, protect your flexibility.
Instead of applying to a dozen lenders yourself, we run one scenario across 40+ investor programs and bring back the strongest pricing for your deal.
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 across 40+ lenders.
Generally yes. Because a rental property carries more risk than an owner-occupied home and DSCR loans skip personal-income verification, they usually price somewhat above a comparable primary-residence conventional loan. They are still true mortgage rates, though, and far below hard-money or personal-loan pricing.
Focus on the factors you control: raise your credit score, put more down to lower your LTV, choose a property with strong rental cash flow to lift your DSCR ratio, and accept a longer prepayment penalty if your plan is to buy and hold. 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.
It does. DSCR programs let you trade prepayment flexibility for pricing: a longer prepay period generally earns a lower rate, while no prepayment penalty gives you the most flexibility at the highest rate. Match the choice to how long you plan to hold the property.
Working with one broker who shops your file avoids stacking up hard inquiries at many lenders. We take your scenario to our investor network on your behalf, so you get competitive pricing without applying everywhere yourself.
Fill out the quick form above and we'll shop your deal across 40+ DSCR lenders to find your best rate.