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DSCR loan rates today
DSCR loans run about 7.00% to 8.50% in 2026, near 7.75% at the midpoint. That is roughly a point above a conventional 30-year mortgage near 6.80%, the premium you pay because the lender skips income verification and finances an LLC instead of a person.
How DSCR rates compare
| Product | Typical rate | Why |
|---|---|---|
| DSCR loan | 7.00%–8.50% | No income verification, entity financing |
| Conventional 30-yr | ~6.80% | Full income qualification, owner or qualifying investor |
| Hard money | 11.50%+ | Short-term, asset-based, fast |
| Fix & flip | 12.50%+ | Purchase + rehab, repaid on sale |
Illustrative bands, not quotes. Actual rates depend on lender, DSCR, LTV, credit, and property. The 6.80% conventional figure is a current market estimate, not a live lender feed.
What today’s rates mean for qualifying
Lenders want a DSCR of at least 1.2, meaning the rent covers debt service with room to spare. At a 7.00%-to-8.50% rate, only 4 of the 18 metros the Investor Yield Index tracks clear that line today. Cleveland leads the Index at 100, with a 1.22 DSCR and a 4.6% cash-on-cash return. The cheaper Midwest and Southern markets cash-flow, while the pricier coastal and Sun Belt metros do not.
metros clear the 1.2 DSCR floor
run a positive cash-on-cash return
cash-on-cash in Cleveland, the Index leader
A lower rate moves you toward qualifying faster than almost anything else. Dropping the rate from the top of the band to the bottom shrinks your monthly payment, lifts DSCR, and turns negative cash flow positive sooner. That is why shopping lenders and buying down the rate is worth the effort on a buy-and-hold deal.
Index figures use 6.80% financing modeled on 18 metros from live Zillow home-value and rent feeds, not lender listings. They show which markets come closest, not a guarantee any deal qualifies.
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What moves your DSCR rate
Four levers set your price. Strong numbers on all four earn the bottom of the band near 7.00%. Weak ones push you toward 8.50% or higher.
Lowers your rate
- DSCR of 1.25 or better
- Lower LTV from a bigger down payment
- Higher credit score
- Steady, lower-risk market
Raises your rate
- DSCR sitting at the 1.2 floor
- Higher LTV with less down
- Weaker credit
- Volatile or thin market
Common questions about DSCR rates
What are DSCR loan rates right now?
Most DSCR loans price between 7.00% and 8.50% in 2026, set off the 30-year Treasury or SOFR plus a lender spread. They sit above conventional 30-year rates near 6.80% because the lender skips income verification.
Why are DSCR rates higher than conventional?
The lender takes on more risk by skipping income verification and lending to an LLC. The spread pays for that risk and for underwriting the loan on the property rather than on you.
How do I get the best DSCR rate?
Push your DSCR above 1.25, put more money down to lower your LTV, raise your credit score, and buy in a steadier market. Stronger deals earn better pricing.