DSCR Loan Rates Explained

What Interest Rates Do DSCR Loans Carry?

DSCR loan rates are typically 1-2% higher than conventional investment property mortgages. As of 2026, most DSCR loans range between 7% and 9% depending on the borrower’s credit score, DSCR ratio, down payment, and property type.

The premium reflects the reduced documentation requirements and the flexibility of qualifying based on property income rather than personal income.

What Factors Affect Your DSCR Rate?

Several variables determine the rate a lender offers:

DSCR ratio: Higher DSCR means lower risk for the lender. Properties with 1.25+ DSCR typically get the best rates. Sub-1.0 DSCR properties face significant rate premiums.

Credit score: Most DSCR lenders require a minimum 660 credit score. Borrowers above 740 unlock the most competitive pricing.

Loan-to-value (LTV): Lower LTV (more down payment) reduces rates. A 75% LTV deal gets better pricing than an 80% LTV deal.

Property type: Single-family rentals typically receive better rates than 2-4 unit properties or condos.

Loan amount: Some lenders offer better rates for larger loan amounts due to efficiency.

Example Rate Comparison

Two investors purchase similar properties at $350,000:

Investor A: 740 credit, DSCR 1.30, 25% down = approximately 7.25% rate
Investor B: 680 credit, DSCR 1.10, 20% down = approximately 8.50% rate

On a $262,500 loan, that 1.25% rate difference equals roughly $250/month in additional cost for Investor B.

How to Get the Best DSCR Rate

Maximize your DSCR by finding properties with strong rent-to-price ratios. Use our calculator to model different scenarios and see how rent adjustments impact your estimated DSCR and rate eligibility.