What are DSCR loan rates right now?
Current lender pages reviewed by DSCRDeals show starting or baseline examples from roughly 5.75% to 7.00% for selected rental-loan scenarios. Actual quotes can be materially higher based on credit, LTV, DSCR, loan size, property, points and prepayment structure. Those examples are not apples-to-apples and should not be averaged into a fake market rate.
Affiliate disclosure: DSCRDeals may receive compensation from some lenders. No lender pays to set the figures on this page. Rates can change without notice.
Dated published examples
| Source | Published figure | What it means—and does not mean |
|---|---|---|
| Easy Street Capital | Rates starting at 5.75% | Starting rate on EasyRent; current page also advertises zero-point options, so do not assume every 5.75% quote is at zero points. |
| RCN Capital | Rates starting at 5.75% | Published for long-term rental; actual leverage is explicitly tiered by credit. |
| HomeAbroad | 6.12% domestic baseline; 7.00% foreign-national baseline | HomeAbroad labels these baseline/par benchmarks and says terms vary by LTV, DSCR, property and borrower profile. |
| OfferMarket | Scenario quote displayed around 6.33% APR | A single illustrated quote for a specific loan, LTV and DSCR—not a universal starting rate. |
| New Silver | Recent funded rental examples span multiple rates | Funded examples demonstrate dispersion; they do not establish today’s rate for a new borrower. |
Primary sources: Easy Street EasyRent · RCN loan programs · HomeAbroad rate benchmarks · OfferMarket DSCR · New Silver funded examples.
Why “starting at” is not your rate
A starting rate normally describes a lender’s strongest eligible scenario under its current assumptions. It may require excellent credit, lower LTV, strong DSCR, a standard property, a larger loan, a particular prepayment penalty and payment of points. If a page does not state those assumptions, the number is useful only as a marketing floor.
The seven pricing levers
Credit score
Higher credit generally improves pricing and leverage. A borrower who clears the lender’s minimum may still be far from its best-priced tier.
LTV and down payment
More equity usually reduces risk. Compare 15%, 20% and 25% down before deciding whether a lower rate justifies more cash at closing.
DSCR
A stronger rent-to-payment ratio can improve pricing. A sub-1.0 loan may be available but carry lower leverage, higher reserves or worse pricing.
Points and lender fees
A lower note rate can be purchased with upfront points. Compare total lender charges and calculate the break-even period rather than ranking quotes by rate alone.
Prepayment penalty
A five-year step-down penalty may price better than a shorter or no-penalty structure. That tradeoff can be expensive if the plan is to sell or refinance early.
Loan size and property
Small-balance loans, rural homes, STRs, condotels, mixed-use properties and multi-unit buildings can price differently or use different programs.
Transaction type
Purchase, rate-and-term refinance and cash-out refinance are different risks. Do not apply a purchase headline rate to a cash-out request.
A rate without the assumptions is noise
Enter the deal’s DSCR, LTV, credit, loan amount, units, STR status and investor profile. Use the resulting shortlist to request comparable term sheets on the same day.
Find Lenders for My DealHow to compare quotes correctly
- Request quotes on the same day with the same loan amount and property facts.
- Separate note rate from APR, points and fixed lender fees.
- Record the prepayment structure and interest-only period.
- Confirm reserves, appraisal charges and legal/entity fees.
- Ask what can trigger repricing before closing.
- Calculate the cost if you refinance or sell in years one through five.
Use the DSCR loan-offer comparison guide before choosing a lender.
FAQ
What is a good DSCR loan rate?
A good rate is competitive for the same day, borrower, LTV, DSCR, property and prepayment structure. A lower advertised rate with more points or a longer penalty may be the more expensive loan.
Are DSCR rates higher than conventional mortgage rates?
Often, because DSCR loans are business-purpose investment-property loans with different underwriting and secondary-market pricing. Compare products only when both are actually available for the same transaction.
Does 25% down lower the rate?
It frequently helps, but the effect depends on lender pricing tiers and the rest of the file.
Can I buy down a DSCR rate?
Often, yes, through discount points. Calculate how long it takes monthly savings to recover the upfront cost.
How often do DSCR rates change?
Pricing can change daily or faster with capital markets and lender adjustments. A term sheet may also reprice when verified facts differ from the initial scenario.