In 2026, DSCR rates run about 0.75–2% above conventional investment loans. Well-qualified (740+, 70–75% LTV, DSCR 1.25+, single-family) has priced near the low-to-mid 6s; national average sits in the low 7s; weaker files reach the 8s–10s+. The DSCR ratio is itself a pricing lever. Rates change daily; these are illustrative, not a quote.
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What sets your DSCR rate
| Factor | Effect on your rate |
|---|---|
| DSCR ratio | 1.25+ prices better; 1.4+ often best; sub-1.0 = no-ratio premium |
| Credit score | 640 floor; 700+ better; 740+ best pricing |
| LTV / down payment | 25–35% down (lower LTV) prices best; max 80% costs more |
| Property type | SFR best, then 2–4 unit, then STR / 5+ unit |
| Loan size | Under ~$100K adds ~0.5% |
| Prepay structure | Standard step-down lowers rate; buyout raises it |
| Structure | Interest-only / ARM start lower than 30-yr fixed |
Illustrative 2026 ranges by profile
| Borrower / property profile | Typical 2026 range* |
|---|---|
| Best — 740+, 70–75% LTV, DSCR 1.25+, SFR | ~6–6.5% |
| Standard — 700–739, ~75–80% LTV, DSCR ~1.1 | ~7–8% |
| Weaker — 640–679, high LTV, DSCR near 1.0 | ~8–10%+ |
| No-ratio (DSCR <1.0) | Higher rate + 30–35% down |
| Foreign national | Add ~0.5% |
*Illustrative for 2026, tied to the 5-year Treasury and daily market conditions, lender, and your full profile. Not an offer or rate lock. See today's rates →
Prepayment & structure — the DSCR trade
DSCR loans usually carry a prepayment penalty — most commonly a 5-year step-down (e.g., 5/4/3/2/1%). Shorter penalties (3-, 1-, or 0-year) are available but raise your rate. Match the structure to your hold:
- Long-term hold? Accept the standard 5-year penalty for the lowest rate.
- Plan to sell/refi in 2–3 years? Pay up for a shorter penalty so you're not stung on exit.
- Interest-only? Lower payment lifts your DSCR and cash flow, at a modest rate bump.
How to get the best DSCR rate
Push credit toward 740+
The biggest lever you control. Every ~20 FICO points can improve pricing.
Bring 25–35% down
Lower LTV out of the top-premium tiers — and it raises your DSCR too. Test it in the calculator.
Strengthen the DSCR to 1.25+
Higher-rent property or more down. 1.4+ often unlocks the best tier.
Match the prepay to your hold
Standard step-down for long holds; shorter only if you'll exit early.
Shop multiple DSCR investors
Pricing and junk fees vary widely — a broker prices your file across lenders at once.
DSCR rate FAQs
What are the rates in 2026?
~0.75–2% above conventional investment — best files in the low-to-mid 6s, average low 7s, weaker to the 8s–10s+. Rates change daily.
Does my DSCR ratio affect the rate?
Yes — 1.25+ prices better, 1.4+ often best; sub-1.0 moves to no-ratio pricing with more down.
What sets my rate?
DSCR ratio, credit, LTV, property type, loan size, prepay structure, and IO/ARM choice.
How do I get the best rate?
740+ credit, 25–35% down, DSCR 1.25+, standard prepay, and shop several investors.
Do prepay penalties affect the rate?
Yes — a standard step-down lowers your rate; buying it down raises it. Match it to your hold.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey. Rate information reflects general 2026 market conditions as of publication and is not a quote.