DSCR Loan Rates Today
AAPL Member · Direct Lender Since 2016 · NMLS #1979189
DSCR rates sit between a conventional mortgage and short-term hard money — higher than an owner-occupied loan because it’s an investment property, but long-term and fixed-rate-capable in a way bridge financing isn’t. As with any loan, the number you actually get depends on your deal, and it moves with the broader rate environment. DSCR loan rates are priced on the property’s strength — its coverage ratio, your leverage, and your credit — rather than on your income. This page breaks down what sets your rate and why a live quote beats any number we could post. We’ve priced DSCR loans as a direct lender since 2016.
The Two Levers That Move a DSCR Rate Most
More than anything else, two numbers drive your DSCR pricing. The first is the DSCR itself: the higher the ratio — the more comfortably the rent covers the payment — the lower your risk and your rate. A property at 1.25+ prices better than one right at 1.0, and a sub-1.0 deal (which we still fund, since we have no minimum DSCR) prices higher to offset the gap. The second is loan-to-value (LTV): lower leverage means lower risk and a better rate, so a larger down payment on a purchase, or more retained equity on a cash-out refinance, earns you better pricing.
Model your ratio on our DSCR loan program page before you apply so you know where you stand on the first lever.
The Other Factors
Beyond DSCR and LTV, your rate reflects your credit (no minimum, but stronger credit lowers the rate), the property type (a clean single-family rental prices better than a more complex asset), whether it’s a purchase or cash-out refinance (cash-out usually prices slightly higher), and your chosen term structure. Short-term rental (Airbnb) deals can price a touch higher than long-term leases because the income is more variable — see our Airbnb loan page for how STR income is underwritten.
Term and Structure Options
The appeal of a DSCR loan is long-term stability on an investment property. Typical structures include 30-year fixed, adjustable-rate (ARM), and interest-only options. Each trades off differently: a 30-year fixed locks your payment for maximum predictability; an ARM may start lower; interest-only minimizes the monthly payment and maximizes cash flow during the hold. Because DSCR loans are longer-term, also ask about the prepayment structure — many carry a step-down prepayment penalty in the early years, which affects your cost if you plan to sell or refinance soon.
Why We Quote Live
A “today’s rate” headline can’t account for your DSCR, your leverage, or your credit, so it’s a teaser, not a commitment. Quoting live means the number applies to your actual property, and it lets us structure the rate around your goal — lowest payment, lowest long-run cost, or maximum cash-out. The requirements page shows exactly what we evaluate to produce it, and you can compare the short-term side on our hard money loan rates today page.
What Affects Your DSCR Rate
What Affects Your DSCR Rate
Frequently Asked Questions
They vary by deal and move with the broader rate environment, so there’s no single honest figure to post. Your rate depends most on your DSCR and leverage, then your credit and structure. A live quote on your specific property is the only way to a real number.
DSCR rates are typically a bit higher than an owner-occupied conventional mortgage because it’s an investment property and the loan qualifies on rent rather than your income. In exchange, you skip the tax returns and debt-to-income limits, and there’s no cap on the number of properties.
Yes. The coverage ratio is one of the two biggest levers on your pricing — the more comfortably the rent covers the payment, the lower your risk and your rate. A property at 1.25+ generally prices better than one right at 1.0.
Yes. We offer 30-year fixed, ARM, and interest-only structures. A 30-year fixed locks your payment for predictability; an ARM or interest-only option can lower the early payment and boost cash flow. We help you pick based on your hold plan.
Many DSCR loans carry a step-down prepayment penalty in the early years, since they’re priced as long-term financing. It affects your cost if you sell or refinance soon, so ask about the structure up front and weigh it against your plans.
Want a real number on your rental?
Tell us the property and the rent. We price our own DSCR loans on the property’s strength, so the quote is real and built around your goals.