DSCR loan rates are the single most Googled question in the DSCR space, and the honest answer is “it depends on six different things, none of which the lender puts on the landing page”. This post lays out what DSCR rates actually look like in early 2026, what drives the pricing, and how to shop smart without burning weeks on a dozen applications. For the full DSCR walkthrough, start with the complete DSCR loan guide.
Current rate ranges
As of early 2026, a strong borrower (720+ FICO, 25% down, 1.25+ DSCR, stabilized property) is seeing 30 year fixed DSCR rates in the low 7s to mid 8s. The spread between a conventional investment property loan and a DSCR loan has compressed over the last year, but DSCR is still typically 0.75 to 1.5 points above conventional for the same borrower and property.
For context, that range means a $200K DSCR loan at 7.75% has a principal and interest payment around $1,430 a month, while the same loan at 8.5% is around $1,540. That is a $110 a month swing for 75 basis points of rate, which compounds over the life of the loan and matters a lot on thin margin deals.
What drives the rate
Six things move the rate on any DSCR loan. Every lender weights them a little differently, but these are the dials.
1. DSCR ratio. Lenders price in tiers. A 1.0 DSCR gets one rate, a 1.20 DSCR gets a better rate, and a 1.50+ DSCR gets the best rate. The difference between tiers is typically 12.5 to 25 basis points. If you are right at a threshold (1.19 vs 1.20), it is usually worth tweaking the deal to cross the line. Buy down the escrow, re quote the insurance, find a lower tax estimate, whatever it takes.
2. Loan to Value (LTV). 75% LTV gets a better rate than 80% LTV, which gets a better rate than 85% (if the lender even goes that high). Every 5% of LTV is roughly 12.5 to 25 basis points. Cash out refinances typically cap 5% lower than rate and term refis, which also reprice at a rate premium.
3. FICO score. Pricing tiers typically at 680, 700, 720, 740, and 760. Each 20 point tier is usually 12.5 basis points. If you are at 699 and closing is four weeks away, pay off a credit card to cross 700.
4. Reserves. Some lenders reward larger reserves with a rate break. Showing 12 months of PITIA in the bank versus 6 months can move the rate by 12.5 basis points at certain lenders.
5. Doc type. Full doc with bank statements gets a slightly better rate than no income, no asset (NINA) DSCR products. More on NINA style products in the DSCR no income verification guide.
6. Prepayment penalty choice. Choosing a 5 year prepay structure usually gets you a slightly better rate than a no prepay option. A 3 year prepay is in between. The trade off is whether you plan to refinance inside the prepay window.
Rate buy downs and points
Most DSCR lenders let you buy down the rate with points. Each point is 1% of the loan amount paid upfront in exchange for roughly 25 basis points of rate reduction, though the exact ratio varies by lender and market.
Whether a buy down makes sense depends on how long you plan to hold the loan. The breakeven math: divide the upfront cost by the monthly savings and get the number of months to recoup. If you plan to refinance or sell inside that window, the buy down loses. If you plan to hold longer, it wins. Most BRRR investors skip the buy down because they are refinancing in 12 to 18 months anyway.
Rate spread versus conventional investment property
Historically, DSCR has sat 0.5 to 2 points above conventional investment property rates. In 2026 the spread is tighter than it was in 2022 to 2023, typically 0.75 to 1.5 points. For a $200K loan, that is roughly $100 to $200 a month more than the conventional equivalent.
You are paying that spread for three things: no income verification, LLC vesting, and speed to close. If you do not need any of those, use conventional. If you need any one of them, DSCR is usually the right call. For the full side by side, see DSCR loan vs conventional mortgage.
Shopping tips without burning time
Get quotes from 3 lenders, not 12. Every application pulls credit, every credit pull can nick your FICO. Three lenders is enough to spot outliers.
Compare APR, not just rate. DSCR has higher origination fees than conventional, so a 7.5% rate with 2 points can be more expensive than an 8.0% rate with 0 points on a short hold. APR normalizes this.
Ask every lender what DSCR tier your deal lands in. If you are at 1.24 and the lender has a tier at 1.25, the next lender might have a tier at 1.20 and price you better for the same deal.
Ask every lender about prepay structure. “5 year step down” means you pay a penalty for 5 years. “No prepay” is the cleanest for scaling investors. The rate differential is usually 12.5 to 25 basis points.
Do not share your target rate. If you tell Lender A you have a quote at 7.5%, they will quote you at 7.49%. Get clean quotes on the same property and compare them yourself.
How rates affect your DSCR calculation
Higher rate means higher PITIA, which means lower DSCR. A 50 basis point rate move on a $200K loan is roughly $60 a month in P&I, which at $2,000 gross rent moves the ratio by about 3 basis points. That sounds small, but on a deal already at 1.02, it can flip you from qualifying to not qualifying.
Use the DSCR calculator to stress test your deal across a 50 to 100 basis point rate range before you lock. This catches rate sensitive deals before you sign the rate lock.
How DoorVault tracks this
Every DSCR loan in your DoorVault portfolio tracks origination rate, current rate, and (for adjustable rate products) the next reset date. When a loan approaches a reset or when you are considering a refinance, you see the rate spread against current market and can model the impact on portfolio DSCR before you pull the trigger. More in the loans dashboard.
FAQ
Why are DSCR rates higher than conventional?
Because the lender is not verifying borrower income, they are taking on more risk and charging for it. The spread compresses in a strong housing market and widens in a weak one.
Can I negotiate DSCR loan rates?
Marginally. Points and fees are more negotiable than the core rate. If you have strong reserves and a high FICO, ask for a relationship discount.
How often do DSCR rates change?
Daily, like conventional. Lenders re sheet every morning based on the ten year Treasury. Lock early if you are in a rising rate environment.
Run the rate impact on your deal
Try the DSCR calculator to see how a rate change moves your ratio. For the full DSCR playbook, go back to the pillar guide. Track rate and DSCR on every loan at https://doorvault.app.
