DSCR LOAN RATES
What’s your DSCR rate?
What impacts a DSCR loan rate. Every DSCR rate starts from a base price, then moves up or down with your deal. Two investors on the same day can get very different rates. Here’s exactly what moves yours.
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The short answer
- There is no single DSCR rate. Anyone quoting one without your deal is guessing.
- Your rate is a lender’s base price plus loan-level pricing adjustments (LLPAs) for your specific deal and borrower profile.
- Each lender builds its own LLPAs, so the same deal can price very differently from one lender to the next.
SAMPLE RATES · OCTOBER 27, 2026
What a strong deal priced at today
One scenario, priced on October 27, 2026: the purchase of a single-family rental with 760+ credit, a 1.25+ DSCR and a $400,000 loan amount, on a 30-year fixed with a 5-year prepayment penalty. Only the LTV changes.
| 70% LTV | 6.75% |
| 75% LTV | 6.875% |
| 80% LTV | 7.25% |
Notice the jump at 80%. Less leverage can lower your rate; more leverage can raise it.
Sample rates for illustration only, not a quote, rate lock or commitment to lend. Rates change daily. Your rate depends on your credit, DSCR, property type, location, loan amount, prepayment penalty and lender guidelines, which vary by lender and by state. Business-purpose loans for investment properties only.
HOW PRICING WORKS
What an LLPA is
A loan-level pricing adjustment is a price change a lender applies for a specific factor in your loan. Every factor that adds or reduces risk moves the price. Your rate is built like this:
Some LLPAs work for you and lower your rate; others raise it. Credit is one: a 780 score improves your rate, while a 680 raises it. That’s why a rate quoted without your deal is ambiguous. Change the LTV, the property type or the income you qualify on, and the rate changes with it.
LTV is a good example of choosing which LLPAs work for you. Taking less cash out lowers your LTV, and that can lower your rate. But that trade has to fit your goals: cash gets you into the next property, while a lower rate increases your cash flow. Which season are you in? There’s no right answer, only the one that aligns with your goals.
WHAT MOVES YOUR RATE
Twelve things that impact a DSCR rate
Lenders price a loan based on their risk. When your deal lowers their exposure, they reward you with a lower rate; when it raises their exposure, they penalize you with a higher one. Many of the factors below can work for you or against you, depending on whether your deal adds risk or reduces it.
Loan-to-value (LTV)
Less leverage can lower your rate; more leverage can raise it.
DSCR ratio
A stronger ratio prices better. At some lenders, getting to 1.25+ improves your rate by about 0.25%.
Credit score
Pricing moves in credit buckets. A 780 score improves your rate; a 680 raises it.
Property type
Condos, 2–4 units and other property types carry their own adjustments.
Location: state and rural
Pricing varies by state. Rural properties carry an adjustment that hits both the rate and the leverage, a 5% LTV reduction with some lenders.
Prepayment penalty
The longer the prepayment penalty, the lower the rate. See how to choose a prepayment penalty.
Loan amount
Varies by lender, but expect a hit below $150,000 and another below $100,000. Lenders don’t really want loans under $100,000, so they price them hard.
Cash-out vs. rate-and-term
A cash-out refinance carries a different adjustment than a purchase or rate-and-term refinance.
Short-term rental income
Always a pricing hit. But STR rents often push the DSCR to 1.25+, and that benefit can offset the hit by about 0.25%.
Living rent-free
A borrower living rent-free can trigger a pricing adjustment.
Interest-only
An interest-only payment option adjusts the rate.
First-time investor
Some lenders add a pricing adjustment for investors without a track record.
Where your credit score lands:
Best DSCR pricing starts at 760. Hard money adds one more tier at 780+.
See the full credit buckets and DSCR tiers in our DSCR loan requirements, and run the payment both ways in our DSCR calculator.
CASH OR RATE?
More cash out or a lower rate? Choose for your season
Taking less cash out lowers your LTV, and a lower LTV can lower your rate. But that trade has to line up with your goals. Cash gets you into the next property. A lower rate increases your cash flow. Which season are you in, and what matters more to your goals right now? There’s no right answer. Choose the structure that aligns with your goals.
WHY A BROKER
Same deal, different lenders, different rates
Every lender builds its own LLPAs. One lender may price short-term rental income harshly while another barely adjusts for it; one may reward a 1.25 DSCR while another doesn’t. A single lender can only offer its own grid. As a broker, we run your scenario across many lenders and match your deal to the one whose pricing and underwriting fit it. More on that in DSCR loan broker vs. direct lender.
HOW TO LOWER YOUR RATE
Five ways to lower your DSCR rate
- Get to 760+ before you apply.
- Push your DSCR over 1.25. Qualifying on actual rents instead of market rents can get you there.
- Bring leverage down a step if the cash flow works either way.
- Match the prepayment penalty to your hold. Longer prepay, lower rate.
- Skip interest-only unless the cash flow needs it.
STRAIGHT ANSWERS
DSCR loan rate questions
What are DSCR loan rates today?
There is no single DSCR rate. Every rate starts from a lender’s base price and is then adjusted for your deal: LTV, DSCR, credit score, property type, state, prepayment penalty, loan amount, loan purpose, income type and more. That’s why we quote your actual scenario instead of an average.
What is an LLPA on a DSCR loan?
A loan-level pricing adjustment: a price change a lender applies for a specific risk factor in your loan, such as higher LTV, a lower DSCR, short-term rental income or a cash-out refinance. Your rate is the base price plus all of the LLPAs that apply.
Does a higher DSCR lower my rate?
Yes. At some lenders, getting your DSCR to 1.25 or higher improves your rate by about 0.25% compared with a deal that just clears 1.00.
Does short-term rental income affect my DSCR rate?
Yes. Short-term rental income is always a pricing hit. But STR rents often push the DSCR to 1.25 or higher, and that benefit can offset the hit by about 0.25%.
Does a longer prepayment penalty lower my rate?
Yes. The longer the prepayment penalty, the lower the rate. Match it to how long you plan to hold the property.
Why do different lenders quote different DSCR rates?
Each lender builds its own LLPAs, so the same deal can price very differently from one lender to the next. A broker runs your scenario across many lenders to find the best fit.
DSCR KINGS · INVESTOR FINANCING
Get your rate, not an average
Send us the property, the rent and your credit range. We’ll price your actual deal across our lenders. No credit pull to start.
Pricing depends on the full loan scenario and changes with the market. This is not a commitment to lend. Business-purpose loans for investment properties only; not for owner-occupied homes. Lending guidelines, leverage and loan programs vary by lender and by state and are subject to change. Terms and approval depend on the property, the borrower’s credit and capital-partner guidelines and are not guaranteed. Examples are for illustration only.
