DSCR Loan Rates for August 2026

Get real pricing in about 60 seconds: estimated rates, fees, payments, and DSCR ratio. See your scenario without a call or a sales pitch.

DSCR Market Snapshot — August 2026

  • Program eligibility depends on the full combination of qualifying factors. If your scenario is outside the box, talk to a loan officer. Start with the pricing engine to know your numbers before you ever sit down with a seller.
  • Eligibility at each LTV tier depends on the combined FICO score, DSCR, loan amount, transaction type, property type, and prepayment assumptions shown. Unavailable cells indicate ineligible combinations.

Indicative ranges only; pricing is subject to change. See Program Guidelines for eligibility and program details. Use the calculator above for estimated pricing.

How DSCR Loans Work

DSCR loans qualify a borrower based on a rental property’s income, not your personal W-2 income, tax returns, or debt-to-income ratio. That makes them the standard tool for real estate investors growing portfolios beyond what conventional financing would allow. Because DSCR mortgages are priced as investor-property debt rather than owner-occupied debt, comparing them to a standard 30-year primary-residence rate misses the point; the underwriting logic, risk profile, and pricing tiers are entirely different.

What is a DSCR ratio?

DSCR (Debt Service Coverage Ratio) is the ratio of a property's monthly rental income to its monthly loan payment (PITI: principal, interest, taxes, and insurance). A DSCR of 1.22 means the property earns 22% more than its payment. Eligibility and pricing depend on the full combination of program factors.

What is LTV and how does it affect my rate?

Loan-to-value (LTV) is how much you're borrowing versus the property's appraised value. 75% LTV means a 25% down payment. Lower LTV reduces lender risk. LTV is one factor considered in the published pricing model.

How are DSCR loan interest rates calculated?

Your rate is determined by four inputs: DSCR, LTV, property type, and FICO score. Higher DSCR, lower LTV, and stronger credit each move the rate down a tier. The calculator above shows the estimated pricing tier based on your scenario.

What property types qualify?

Single-family rentals, 2-4 unit properties, condos, townhomes, and short-term rentals (Airbnb / VRBO) are all eligible for DSCR financing. The calculator lets you select property type and adjusts pricing automatically. Short-term rentals and 2-4 units price slightly different from long-term single-family.

How the DSCR loan calculator works

Most DSCR calculators online give you a ratio and stop there; or they hold the result behind a contact form before showing results. This DSCR loan calculator gives you rate, payment, and qualification in about 60 seconds, with no name, email, or phone number required.

Enter the property’s monthly rent, your estimated taxes, insurance, and any HOA dues, then the purchase price and loan amount you are considering. The calculator returns your DSCR ratio, an estimated interest rate based on your credit and loan-to-value, your monthly payment broken down by principal, interest, taxes, insurance, and association dues (PITIA), and where your deal lands against program guidelines.

Run multiple scenarios in real time by changing rent, down payment, or purchase price.

DSCR loan rates: what actually drives your number

DSCR loan pricing is determined by FICO score, LTV, DSCR, loan amount, and program terms. See the current rate tiers at the top of this page.

Your DSCR ratio. The more cash flow the property throws off relative to the payment, the lower your rate. DSCR is one factor considered in the published pricing model.

Your loan-to-value. More equity means less lender risk and a better rate. LTV is one factor considered in the published pricing model.

Your credit score. Higher FICO pushes you toward the bottom of the rate range. Credit score is a primary pricing factor: tier boundaries are shown in the pricing table on this page.

Because these three move together, two investors can get very different DSCR loan interest rates on the same property. The only way to know your actual number is to run your scenario. A published “average rate” tells you almost nothing about what your deal prices at.

DSCR loans are typically structured as 30-year fixed loans, with interest-only and 40-year options available on many programs to improve cash flow. Available loan structures, terms, and pricing depend on the program and the full combination of qualifying factors.

How DSCR is calculated

DSCR (debt service coverage ratio) is the property’s monthly rent divided by its total monthly payment (PITIA):

DSCR = Monthly Rent ÷ Monthly PITIA

A DSCR of 1.0 means the rent exactly covers the payment. A DSCR of 1.25 means the property generates 25% more income than the payment requires. For interest-only loans, the calculation uses the interest-only payment, which raises the ratio.

Program eligibility depends on the full combination of qualifying factors. No-ratio options are available for strong-equity scenarios where the rent does not fully cover the payment.

DSCR loan requirements

DSCR loans qualify on the property’s cash flow, not your personal income. There are no W-2s, no tax returns, and no employment verification. Four factors determine whether you qualify and what rate you get: your DSCR ratio, your loan-to-value, your credit score, and the property type.

LTV eligibility at each pricing tier depends on the combined FICO score, DSCR, loan amount, transaction type, property type, and prepayment term. Unavailable cells in the pricing table indicate ineligible combinations.

Credit score is a primary pricing factor. Higher FICO scores may qualify for more favorable rate tiers as shown in the pricing table. Minimum score requirements and tier boundaries vary by program.

DSCR floor: this program goes down to 1.0, so a break-even property still qualifies. No-ratio options are available for strong-equity scenarios where the rent does not fully cover the payment.

Property types: single-family rentals, condos, townhomes, 2-4 unit properties, and short-term rentals (Airbnb, VRBO) all qualify. The calculator adjusts pricing automatically by property type.

Frequently asked questions

What is the interest rate on a DSCR loan?
DSCR loan rates are determined by FICO score, LTV ratio, DSCR, loan amount, prepayment term, property type, transaction purpose, and state. Published pricing tiers are shown in the rate table on this page.
How does the DSCR loan calculator estimate my rate?
The calculator estimates your rate based on your FICO and LTV. Enter your scenario to see the estimated pricing tier that applies to your combination of qualifying factors.
What is the maximum LTV on a DSCR loan?
Rate pricing improves across higher FICO tiers and lower LTV tiers as shown in the full pricing table. No single FICO band or LTV tier is promoted as categorically best; eligibility depends on the full combination of qualifying factors.
What credit score do I need for a DSCR loan?
Credit score affects your rate tier. Higher FICO scores may qualify for more favorable pricing, subject to the full combination of program eligibility factors. Minimum score requirements and tier boundaries vary by program.
What is a good DSCR ratio?
1.0 or above qualifies for this program. Eligibility and pricing depend on the full combination of program factors, including DSCR, LTV, FICO, property type, and loan amount.
Can I get a DSCR loan in an LLC?
Yes. DSCR loans are business-purpose loans and can close in the name of an LLC, LP, or other entity. This is common among investors for liability and tax planning.
How fast can a DSCR loan close?
Closing time depends on transaction, documentation, appraisal, underwriting, and other conditions.
Do DSCR loans require an appraisal?
Yes. A full appraisal with a rent schedule (Form 1007) is required. It establishes both the property value and the market rent used in the DSCR calculation.
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