DSCR loan rates today
DSCR Loan Rates Today: what do real estate investors need to know?
Current DSCR loan rate bands for rental property investors, broken out by DSCR ratio, LTV, and credit tier — plus the live benchmarks that move pricing. Final eligibility, pricing, and terms are subject to a complete application, credit and property review, and full underwriting.
- DSCR rates are priced off the property's cash flow, your leverage (LTV), and credit — not personal income or tax returns.
- Current illustrative 30-year fixed bands run roughly 7.55%–9.75% depending on tier; ARMs and interest-only price differently.
- The biggest levers are DSCR ratio, LTV, FICO, property type, and whether the loan is a purchase, rate & term, or cash-out.
- No-Ratio structures (DSCR below 1.00) trade a higher rate and lower LTV for qualifying without covering PITIA.
- Every band shown is illustrative and not a quote, rate lock, offer, or commitment to lend — binding pricing follows underwriting.
Live DSCR Pricing vs. the Illustrative Bands
The tier tables further down this page are illustrative ranges to help you understand where a file lands. The block below is different: it is actual pricing returned by the pricing engine, priced with lender fees in on a 30-day lock, with the rate, APR, points or lender credit and payment on each row all drawn from the same quote.
Use the bands to understand the shape of DSCR pricing and use the live block to see the current market. When the two disagree, the live figures are the current ones — bands are updated periodically, pricing moves intraday.
Live pricing unavailable — no current pricing response.
Get My Live DSCR Rates
The three cards above are featured examples from the current snapshot. Enter your own property, credit tier, leverage and rent to see every eligible option for your deal.
Rate & Pricing Disclosure: This quote is an indication for the scenario entered and the pricing available at the time shown. Rates and terms are subject to change without notice and may change or may not be available at commitment or closing. This is not a rate lock, loan approval, commitment to lend or offer of credit. APR reflects applicable borrower-paid finance charges and pricing credits for this quote and may be the APR returned with the quote or our own audited calculation where verified borrower-paid finance charges outside the quoted price apply. Additional lender and third-party costs may apply and may not be included in the APR. Payment shown is principal and interest only and excludes taxes, insurance, HOA dues and other applicable costs, so your actual payment will be higher. Simply Approved Mortgages LLC is a mortgage broker, not the funding lender. Business-purpose, non-owner-occupied investment property only. Equal Housing Opportunity.
APR reflects applicable borrower-paid finance charges and pricing credits for this quote. Depending on the option, the APR shown is either the APR returned with that quote or our own audited calculation, used where verified borrower-paid finance charges outside the quoted price apply. Other lender and third-party costs may apply and may not be included in the APR.
Estimated payment is principal and interest only and does not include property taxes, insurance, HOA dues, flood insurance, escrows or other applicable costs.
Rate questions for this page
Why show ranges and live pricing on the same page?
Ranges explain how tiers work across scenarios. Live pricing shows one specific scenario at one point in time. Both are useful, and neither is a rate lock or a commitment to lend.
Can I get today's exact rate for my property?
Price the scenario in the rate center for live indications, then submit the property details for written pricing from a loan officer.
Source: Federal Reserve Economic Data (FRED) · Freddie Mac · NY Fed · U.S. Treasury. Benchmarks are wholesale reference rates — DSCR pricing carries a risk-adjusted spread on top of them.
What each DSCR tier prices at
Rate bands are illustrative starting ranges for a 1–4 unit non-owner-occupied rental in our lending footprint. They are not a quote, lock, offer, or commitment to lend.
| Tier | DSCR | LTV | FICO | Rate band | Notes |
|---|---|---|---|---|---|
| Best pricing | 1.25+ | 65–70% | 720+ | 7.55% – 8.25% | 30% down preferred; strongest pricing tier with the fewest points. |
| Standard | 1.00–1.24 | 75% | 700–719 | 8.00% – 8.90% | The most common DSCR scenario; 25% down. |
| Higher leverage | 1.15+ | 80% | 720+ | 8.50% – 9.40% | Maximum standard LTV; stricter reserves. 85% is exception-only at 740+ FICO on an SFR. |
| No-Ratio | 0.75–0.99 | 70–75% | 680+ | 9.00% – 9.75% | Property doesn't fully cover PITIA; larger down payment. |
| Credit-story | 1.00+ | 70% | 620–659 | 9.25% – 10.25% | 30%+ down, strong reserves, compensating factors. |
Get your DSCR Scenario Summary
Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.
- HUD FMR rent estimate for the subject property
- AVM property value + max qualifying loan
- Calculated DSCR with PITIA breakdown
- Cash-on-cash and year-one cash flow
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
Rate bands by DSCR product
| Structure | Rate band | Terms |
|---|---|---|
| 30-Year Fixed DSCR | 7.55% – 9.75% | Fully amortized · no balloon |
| 40-Year Fixed (10-yr IO) | 7.75% – 9.95% | Interest-only 10 years, then 30-yr amortization |
| 5/6 ARM DSCR | 7.15% – 9.25% | Fixed 5 years, then SOFR-indexed |
| 7/6 ARM DSCR | 7.35% – 9.45% | Fixed 7 years, then SOFR-indexed |
| DSCR Cash-Out Refinance | 7.90% – 10.00% | Max 75% LTV at the strongest tier |
| Short-Term Rental (STR) DSCR | 8.10% – 10.25% | Max 75% LTV; T-12 actuals or projections |
What actually moves your DSCR rate
Every 0.05 below the 1.25 best-pricing threshold generally adds pricing. Raising rent, lowering the loan amount, or switching to interest-only can move you a tier.
65–70% LTV prices best. 80% is the standard maximum and costs more; 85% is exception-only at 740+ FICO on a single-family rental.
720+ preferred, 660 floor. Pulling a score across a 20-point tier line is often the cheapest rate improvement available.
A 5-year step-down prepay prices better than a 1-year or zero-prepay option. Match the term to your actual hold period.
Single-family long-term rentals price tightest. Short-term rentals, condotels, and 5–8 unit assets carry add-ons.
Purchase and rate-and-term price below cash-out. Cash-out caps at 75% LTV on the strongest tier.
Trade-offs of DSCR pricing
- No tax returns, W-2s, or DTI calculation
- Close in an LLC without a pricing premium
- Interest-only options that materially improve cash flow
- No cap on the number of financed properties
- Rates sit above owner-occupied conventional pricing
- Prepayment penalties are standard on the best-priced options
- Higher leverage requires stronger DSCR and reserves
- Cash-out is capped below purchase leverage
Want your actual band instead of a range?
Send the address, rent, and purchase price. We'll return a scenario review with the tier your deal lands in.
DSCR loan programs
Every DSCR variant we arrange, with the leverage and credit floor that applies to each.
Buy a 1–8 unit rental qualified on market rent or the in-place lease — up to 80% LTV, no tax returns.
Pull equity out of a rental you already own to fund the next purchase. Up to 75% LTV on the strongest tier.
Replace hard money, a maturing bridge, or a higher-rate note with 30-year fixed rental financing.
A revolving line against rental equity — draw only what you need. 700 min FICO, up to 75% CLTV.
A second-position line behind your existing first mortgage on a rental — priced on combined loan-to-value.
For properties that don't fully cover PITIA. Larger down payment and a rate premium instead of a ratio test.
The formula, the rent figure lenders use, and every step from scenario review to closing.
Credit, DSCR floor, down payment, reserves, property type, and entity rules laid out in one place.
A 10-year interest-only period lowers PITIA, lifts your ratio, and frees monthly cash flow.
The honest ledger — what you gain over conventional financing and exactly what it costs.
Run rent ÷ PITIA in seconds and see which pricing tier your deal lands in.
DSCR rate questions
How much higher are DSCR loan rates than conventional rates?
DSCR pricing typically runs roughly 1.00–2.00 percentage points above a comparable 30-year conforming benchmark. The spread compensates for no income documentation, entity vesting, and investor-property risk. Your actual spread depends on DSCR, LTV, FICO, and property type.
What DSCR gets the best rate?
A DSCR of 1.25 or higher generally reaches the best-pricing tier. Between 1.00 and 1.24 is the standard tier. Below 1.00 moves into No-Ratio pricing, which carries a premium and a lower maximum LTV.
Does credit score change a DSCR rate?
Yes. 720+ is the preferred tier, 700–719 is mid-tier, and 660 is the general program floor. Lower scores are workable with more down payment and reserves but price higher.
Are DSCR rates fixed or adjustable?
Both are available: 30-year fixed, 40-year fixed with an interest-only period, and 5/6 or 7/6 ARMs indexed to SOFR. Fixed carries a slightly higher start rate; ARMs suit investors planning to sell or refinance within the fixed window.
Can I buy down a DSCR rate?
Yes. Discount points are available on most DSCR programs. Whether a buydown pays off depends on how long you plan to hold the property and the prepayment penalty structure you select.
Do prepayment penalties affect the rate?
They do. A longer prepay structure (for example 5-year step-down) usually prices better than a shorter or zero-prepay option. We can show you both so you can weigh flexibility against rate.
Do DSCR rates vary by state?
Yes. Some states carry title, escrow, or licensing cost differences that show up in the total closing figure even when the note rate itself is unaffected. A handful of states also have property types or entity structures with extra requirements that can shift pricing.
Does loan amount affect the rate?
It can. Very small balances (under roughly $100,000) often price higher because fixed origination and servicing costs are spread over less principal, and very large balances above standard limits may carry their own adjustment.
Do short-term rentals get worse pricing?
Generally yes. Short-term rental DSCR programs cap around 75% LTV and typically carry a rate add relative to a long-term-lease property, reflecting the income volatility of nightly and weekly bookings.
Does property type change my rate?
Yes. Single-family and warrantable condos generally price best, while 2–4 unit properties, non-warrantable condos, and condotels typically carry a rate or leverage adjustment for the added complexity and liquidity risk.
Can I lock a DSCR rate before the appraisal is done?
Some programs allow a preliminary lock once the loan file is substantially complete, but final pricing is confirmed after the appraisal supports the rent and value used to underwrite the file.
Why did my quoted rate change between application and closing?
Pricing is tied to daily market movement plus your final credit pull, appraisal, and DSCR calculation. A material change in any of those inputs, or a market move before you lock, can shift the number you originally saw.
All rates and terms shown are illustrative, subject to change without notice, and are not a quote, rate lock, offer, or commitment to lend. Binding figures appear on your term sheet after underwriting. Business-purpose loans only.
Related programs & tools
The main program: qualify on the property's rent instead of your tax returns.
Underwrite nightly-rate revenue from trailing 12-month actuals or market projections.
Voucher-backed rent with the HAP portion treated as the conservative qualifying income.
Short-term, asset-based financing when you need to close before a refinance or sale.
Purchase plus rehab draws on a 12-month interest-only term for value-add projects.
Current rate bands across every business-purpose program we place.
What Can Change the Outcome
Investor pricing is tiered, not quoted as one number. Credit band, LTV band, DSCR band, property type, occupancy status, and prepayment structure each carry an adjustment, and they stack. Moving a single tier — five points less leverage, twenty points of FICO, or a longer prepay term — is usually the fastest route to a better rate.
Rate and cost are interchangeable. The same scenario can be shown at a lower rate with points or a higher rate with a lender credit, so compare quotes at the same cost basis and the same lock period or you are not comparing anything.
Any band shown on this page is a scenario illustration, not a quote. Your actual terms come from a specific lock on a specific file, priced the day it is locked.
Reviewed by Simply Approved Mortgages · NMLS #2620881. Business-purpose investor lending only.
Get your DSCR pricing in writing
Same-business-day scenario review on complete submissions.
Get Your Personalized Rate QuoteGet your personalized investor loan quote
Pick the loan type that fits your deal and complete a short, tailored pre-qualification. A licensed loan officer follows up with an initial scenario review once we have your credit authorization and supporting documents — usually the same business day. Formal pricing and terms follow underwriting.
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The form below is tailored to DSCR rental loan — only the questions your program needs.