DSCR Loan Rates Today (July 2026)

There is no single market-wide DSCR rate. In July 2026, published rates varied by more than two percentage points, and reputable sources disagreed on whether DSCR loans cost more or less than conventional investment-property financing.

Each figure below includes its source, borrower scenario, and capture date. Use the data to estimate a realistic range, then request a written quote for your specific property and loan terms.

Published DSCR rates, July 2026

Our benchmark scenario

• Unless stated otherwise, any single DSCR rate shown on this site assumes a one-unit, non-owner-occupied rental with a 30-year fixed term, a 30-day rate lock, a 740 FICO score, 75% LTV, a 1.25 DSCR, a five-year prepayment penalty, and no discount points.
• Changing any one of these assumptions can affect the rate. Without the borrower, property, and loan details behind it, a quoted rate is not useful for comparison.

Rates by loan term

After LTV, the loan term is one of the biggest factors affecting the interest rate and monthly payment. Although investors often compare current 30-year DSCR rates with 40-year options, only one lender reviewed publishes separate rate ranges by term.

A 40-year amortization or interest-only payment can improve the property's DSCR by lowering the monthly payment, without increasing the down payment. If the higher ratio moves the loan into a better DSCR tier, the improved pricing may offset some or all of the higher rate associated with that loan structure. An adjustable-rate mortgage (ARM) is also worth comparing: in the only published ranges above, the 1-year ARM starts one percentage point below the 30-year fixed option.

Are DSCR rates higher than conventional?

Generally, yes, but the difference varies widely across published sources.

• Sources reporting a DSCR premium: Sistar estimates 0.5 to 1.5 percentage points above conventional. RCN Capital also publishes 0.5 to 1.5 points, Ridge Street states 0.5 to 1.0, and another guide gives a range of 0.5 to 3. OfferMarket's 7.24% national DSCR average is 0.69 percentage points above the same source's 6.55% conventional figure.
• Sources showing DSCR as competitive or cheaper: HomeAbroad's published rates are lower than Bankrate's conventional investment-property rates at every LTV shown. Griffin Funding also reports that DSCR rates can match or beat conventional investor financing after factoring in conventional loan-level price adjustments from the Fannie Mae LLPA matrix.

Both conclusions can be valid because the sources use different conventional rates for comparison. Conventional investment-property loans include additional pricing adjustments based on occupancy, credit, and LTV. Comparing a DSCR rate with a general conventional mortgage rate can make the DSCR loan look more expensive. Comparing it with the actual conventional rate offered to an investor may show that a strong DSCR loan is competitive.

The best approach is to request quotes for both loan types using the same property and borrower details. Do not assume conventional financing will cost more simply because a DSCR lender says it will, or rule out a DSCR loan based on a general estimate that its rate will be two percentage points higher.

What moves your rate

Loan-to-value

LTV is usually one of the biggest factors affecting a DSCR rate. In one table showing rates without discount points, lowering the LTV from 80% to 70% reduced the interest rate from 6.490% to 6.125%—a decrease of 0.365 percentage point. If an extra 5% down moves your loan into a lower LTV tier, you may qualify for a better rate and pay less interest over time.

Credit score

Published rate tables often use a 740 credit score as the starting point and offer less favorable terms below that level. One lender improves pricing with each 20-point increase in FICO score. Credit can also affect how much you can borrow: under one program, a 720 score allows up to 85% LTV, while a 680 score limits the loan to 75% LTV.

DSCR ratio

A ratio of 1.25 or higher generally qualifies for the strongest tier. A result below 1.00 commonly produces both a rate adjustment and a lower LTV ceiling. No-ratio programs may add another premium and often limit leverage to approximately 75%.

Prepayment penalty term

This feature offers more room for choice than most other rate inputs. Selecting a five-year declining penalty instead of no penalty commonly reduces the rate by 0.25 to 0.50 percentage points; one source expands the possible discount to 0.75. The right trade depends on the planned ownership period. See DSCR loan prepayment penalties, where we run the math on the closing costs page.

Loan purpose and structure

• Cash-out refinance: Pricing is approximately 0.2 percentage points above a purchase or rate-and-term refinance, and maximum LTV commonly falls to 75%.
• Interest-only: The typical adjustment is approximately 0.2 to 0.5 points above an amortizing mortgage. In exchange, the smaller payment improves your DSCR ratio and may unlock better pricing. On a $300,000 loan at 6.5%, interest-only takes PITIA from $2,375 to $2,104 and moves the ratio from 1.20 to 1.35.
• 40-year terms and ARMs: Both are widely available. One lender's 1-year ARM range started one percentage point below its 30-year fixed range, which may appeal to investors who plan to sell or refinance within a set period.

Property type and borrower profile

• Short-term rental: Rates are generally higher than they are for long-term rentals. One lender, for example, starts at 6.0% for long-term rentals and 6.25% for short-term rentals.
• Foreign-national borrower: One rate sheet lists a 7.000% rate for foreign nationals, compared with 6.125% at the same 70% LTV.
• Multifamily or commercial property: Rates are generally higher than those for single-family rentals. Published estimates range from about 6.5% to 7.75% for properties with five or more units, while commercial real estate may cost more.

How to get a lower rate

• Reduce the LTV: Putting more money down to lower the LTV from 80% to 75% or 70% is one of the most reliable ways to qualify for a lower rate.
• Improve the property's rental coverage before applying: Ask the lender to compare the standard payment with an interest-only option. If the program allows it, using current market rent instead of an older below-market lease may also improve the property's DSCR and lower the rate.
• Match the prepayment term to your investment timeline: If you expect to hold the property for at least five years, accepting a five-year declining penalty may lower the rate by 0.25 to 0.50 percentage points without affecting your planned exit.
• Calculate the breakeven before buying discount points: Paying points only makes sense if you keep the loan long enough for the monthly savings to cover the upfront cost. A buydown that breaks even in year seven will not benefit an investor who plans to sell in year four.
• Compare the same loan terms: Get quotes from three lenders on the same scenario, using the same property, LTV, rate-lock period, loan structure, and prepayment term for each. An advertised starting rate is not directly comparable to a personalized quote. Begin with our DSCR lender comparison.

Why DSCR rates move

DSCR pricing does not follow the owner-occupied 30-year mortgage average directly. DSCR loans are securitized and sold, so rates respond more closely to intermediate-term Treasury yields plus a credit spread. One lender reported a 7.24% national-average 30-year DSCR rate in mid-May 2026, compared with a 4.12% five-year Treasury yield and a stated 3.20-point spread.

For that reason, the five-year Treasury can be more informative than a headline 30-year mortgage rate. DSCR financing becomes cheaper relative to its benchmark when the credit spread narrows, even if widely reported mortgage rates have not changed.