What are DSCR loan rates today?

DSCR rates move daily with the investor credit market and are quoted off a base rate adjusted for DSCR ratio, FICO, LTV, prepayment structure, and property type. The only reliable number is a live quote from a pricing engine.

Are DSCR loan rates higher than conventional rates?

Generally yes. DSCR loans are business-purpose investor loans underwritten to property cash flow, so they carry a risk premium over agency owner-occupied pricing. The spread narrows on higher DSCR ratios, lower LTVs, and stronger FICO scores.

Are DSCR loans fixed rate?

Most DSCR loans are 30-year fixed, but 5/6, 7/6, and 10/6 ARM structures and interest-only options are available. Interest-only lowers the qualifying payment and can raise the DSCR ratio into a better pricing tier.

What DSCR ratio gets the best rate?

Pricing improves in tiers. A DSCR at or above 1.25x typically prices best, 1.00x to 1.24x sits in the middle, and sub-1.00x files carry the widest add-ons and lower maximum LTVs.

How does the prepayment penalty affect a DSCR rate?

Prepay term is one of the largest pricing levers. A 5-year prepayment penalty usually prices materially better than a 3-year, which prices better than a 1-year, which prices better than no prepay at all.

Do DSCR rates differ for short-term rentals?

Yes. Short-term rental income is treated as more volatile than a signed long-term lease, so STR files usually carry a modest add-on. The add-on is smaller when documented operating history is provided instead of projections.

DSCR Loan Rates: How Investor Pricing Works

How DSCR loan rates are built for brokers: ratio tiers, LTV, FICO, prepayment structure, and property type adjustments — plus live scenario pricing in PriceIQ.