DSCR Pricing, Explained

DSCR Loan Rates (2026)

Q: What are DSCR loan rates today?

There is no single DSCR rate — pricing comes off a rate sheet that moves with the bond market and is quoted per scenario. Your rate is set by your credit-score tier, LTV, DSCR ratio, loan amount, transaction purpose, property type, and the prepayment structure you choose. Total Quality Lending quotes a same-day rate range from a soft credit pull (no FICO impact), so the fastest way to see your real number is a quote, not an advertised teaser.

Q: Why don't lenders advertise a DSCR rate?

Any advertised number would assume the best-case file — top credit tier, low LTV, strong DSCR, long prepay period — and most real scenarios differ on at least one factor. A teaser rate you can't actually get is worse than an honest factor list. The eight factors above are what actually set the price.

Q: Are DSCR rates higher than conventional mortgage rates?

Typically yes. DSCR loans are business-purpose, non-QM loans priced on the property's cash flow rather than your personal income, without agency (Fannie/Freddie) backing — so they carry a premium over conventional investor loans. The gap narrows at high credit scores and lower LTVs. What the premium buys: no tax returns or W-2s, LLC vesting at closing, no limit on financed properties, and closings in as little as 15 days.

Q: What moves my DSCR rate the most?

Credit-score tier and LTV are the two biggest levers, followed by the DSCR ratio itself. Jumping from the 660 tier to 700, or dropping your LTV five points, usually does more for pricing than anything else you control. Purpose matters too — cash-out prices above purchase at every tier.

Q: How does the prepayment penalty affect my DSCR rate?

It's a direct trade: accepting a longer prepayment-penalty period (up to 5 years, with fixed or declining structures) generally lowers the rate, while a short or zero-penalty structure raises it. If you plan to refinance quickly — a BRRRR exit, for example — model the total cost of a higher rate with a short prepay against a lower rate you'd pay a penalty to escape.

Q: Can I buy down my DSCR rate with points?

Yes. Discount points are available, and whether they pay off depends on your hold period — the longer you keep the loan, the more sense a buy-down makes. Your loan officer will show the break-even month for any buy-down you're considering so the decision is arithmetic, not guesswork.

Q: Does my DSCR ratio change my pricing?

Yes. A DSCR at or above 1.00 qualifies on the standard tier. Below 1.00, the loan is still eligible with a 660+ FICO but at reduced maximum LTV and weaker pricing. A comfortable cash-flow cushion strengthens the whole file — check your ratio with the DSCR calculator before you ask for a quote.

Q: How do I get an actual DSCR rate quote?

Start the questionnaire or call — day one is a soft credit pull (no FICO impact), a pre-screen against the program guidelines, and a same-day initial quote range. A hard pull only happens later, at document collection, when you've decided to proceed. Quotes are free and don't obligate you to anything.

There is no single “DSCR rate” — pricing is quoted per scenario off a rate sheet that moves with the market. This page shows you exactly what sets your number: the eight factors lenders price on, which ones you can actually move, and how to get a real same-day quote from a soft credit pull instead of chasing teaser rates.

Want the eligibility side first? See the full DSCR loan requirements matrix.

The 30-second answer

DSCR rates are risk-based: your credit-score tier and LTV do most of the work, then the DSCR ratio, loan amount, transaction purpose, property type, prepayment structure, and interest-only choice fine-tune the price. DSCR pricing typically runs above conventional because these are business-purpose non-QM loans with no agency backing — in exchange you qualify on the property’s rent with no tax returns, can vest in an LLC, and can close in as little as 15 days. Rates change daily with the market, so the only honest number is a quote against today’s rate sheet.

Program FICO floor: 640
Max LTV (top tier): 80%
Loan amounts: $100K – $3.5M
Initial quote: Same day, soft pull

The 8 factors that set your DSCR rate

These are the same variables that gate eligibility in the program matrix — pricing follows the identical risk logic.

1.Credit score tier

Pricing is tiered by FICO — 640 is the program floor, and each step up (660, 700, 720, 740+) improves both the rate and the maximum LTV available. The 740+ tier gets the best pricing and up to 80% LTV on purchase.

2.Loan-to-value (LTV)

The less leverage, the better the price. A 60–65% LTV file prices meaningfully better than one at the 80% program maximum, because the lender's risk drops with every point of equity.

3.DSCR ratio

A property whose rents fully cover the payment (DSCR ≥ 1.00) is priced on the standard tier. DSCR below 1.00 is still eligible (660+ FICO) but at reduced LTV and less favorable pricing — the cash-flow cushion is the whole point of the product.

4.Loan amount

Loans run $100K to $3.5M. Very small loans (under $150K) and very large ones carry LTV restrictions and price differently than the mid-range where most rental properties fall.

5.Transaction purpose

Purchase generally prices best. Cash-out refinance is treated as higher risk than purchase or rate/term — the matrix allows less LTV for cash-out at every tier, and pricing follows the same logic.

6.Property type

Single-family and 2–4 unit residential price standard. Condo-hotels and rural properties carry LTV caps (75% purchase) and their own pricing treatment. Short-term rentals qualify at full LTV on purchase but use the 20% STR expense factor in the DSCR math.

7.Prepayment structure

DSCR loans let you choose a prepayment-penalty period (structures up to 5 years). Accepting a longer prepay period generally buys a lower rate; a shorter or zero-penalty structure costs more. Some states (AK, KS, MI, MN, NM, RI) don't allow penalties at all, which changes the structures available there.

8.Interest-only option

Interest-only (680+ FICO, max 75% LTV) changes both the payment and the pricing. IO lowers the monthly payment — and the DSCR calculation uses ITIA instead of PITIA — but the feature itself is priced into the rate.

Credit tiers: where pricing steps

Each FICO tier unlocks more leverage — and better pricing. Maximum purchase LTV by representative score (DSCR ≥ 1.00):

DSCR credit tiers — maximum purchase LTV by credit score.
FICO tier	Max purchase LTV	Notes
740+	80%	to $2.5M · cash-out to 80%
720	80%	to $1.5M · cash-out to 80%
700	80%	to $1.5M · 70% to $3.5M
660	75%	cash-out to 70%
640	75%	to $1M · no cash-out

Full matrix — including rate/term, cash-out, and DSCR < 1.00 tiers — on the DSCR requirements page.

How to get a lower DSCR rate — what you can actually move

Cross the next FICO tier before you apply — 660 → 700 → 720 → 740 are the pricing steps that matter.
Put more down: every LTV band you drop improves the price, and 80% LTV is the most expensive place on the grid.
Keep DSCR at or above 1.00 — pick properties (or rents) where the cash flow clears the payment.
Accept a longer prepayment period if you plan to hold — it directly buys down the rate.
Consider points when your hold period is long enough to clear the break-even.
Purchase and rate/term price better than cash-out — if you don't need the cash out, don't pay for it.

Rates, terms, and availability change without notice and depend on your full scenario. Nothing on this page is a rate quote or a commitment to lend — subject to underwriting guidelines.

DSCR vs conventional rates — the honest trade

A conventional investment-property loan will usually carry a lower rate — if you qualify for it. The DSCR premium is the price of qualifying on the property’s rent instead of your tax returns, vesting in an LLC, financing an unlimited number of properties, and closing in as little as 15 days. For investors whose tax returns understate real income (depreciation, write-offs) or who are past the conventional financed-property limit, the DSCR premium is often the only path that scales. Full comparison: DSCR vs Conventional.

Frequently asked questions

What are DSCR loan rates today?

There is no single DSCR rate — pricing comes off a rate sheet that moves with the bond market and is quoted per scenario. Your rate is set by your credit-score tier, LTV, DSCR ratio, loan amount, transaction purpose, property type, and the prepayment structure you choose. Total Quality Lending quotes a same-day rate range from a soft credit pull (no FICO impact), so the fastest way to see your real number is a quote, not an advertised teaser.

Why don't lenders advertise a DSCR rate?