DSCR Loan Rates for June 2026

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

DSCR Market Snapshot — June 2026

  • DSCR loan rates have historically priced 0.50–1.25% above conforming 30-year rates. Your exact spread depends on DSCR, LTV, and credit tier. Stronger DSCR, lower LTV, and higher FICO push your rate toward the bottom of the range. Run your numbers below and see where your deal actually lands.
  • Many DSCR programs floor at a 1.15 DSCR minimum. This program goes down to 1.0, so break-even cash flow still qualifies. 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.
  • SFR purchases and rate/term refinances cap at 80% LTV; cash-out refinances pull back to 75%. Whether you are working on door 1 or door 50, know exactly where your LTV caps land and walk in with a firm grip on your numbers.

Indicative ranges only; rates change daily. See Program Guidelines for eligibility and program details. Use the calculator above for live 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. Most DSCR lenders require at least 1.15 to 1.20, and stronger ratios unlock better pricing.

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, so it almost always earns a better rate — and the pricing improvement at 65% or 70% LTV can be material.

How are DSCR loan interest rates calculated?

Your rate is priced live from 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 exact pricing tier you qualify for in real time, with the same logic our lenders use at lock.

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 rates have historically priced about 0.50% to 1.25% above a conforming 30-year fixed rate. That is a range, not a number. Where you land inside it comes down to three inputs:

Your DSCR ratio. The more cash flow the property throws off relative to the payment, the lower your rate. A 1.25+ DSCR prices better than a break-even 1.0.

Your loan-to-value. More equity means less lender risk and a better rate. The lowest pricing goes to lower-LTV deals.

Your credit score. Higher FICO pushes you toward the bottom of the rate range. Most programs start at a 660 minimum, with the best pricing at 720 and above.

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. Rates change daily with the broader market, so the figure you see is indicative. The calculator pulls current pricing rather than a stale placeholder.

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.

Most lenders floor their programs at a 1.15 DSCR minimum. This program goes down to 1.0, so a property at break-even cash flow still qualifies, with no-ratio options 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 limits: single-family purchases and rate-and-term refinances cap at 80% LTV. Cash-out refinances pull back to 75%. Two-to-four unit and small multifamily properties follow their own tiers.

Credit score: most programs require a 660 minimum. Scores of 720 and above qualify for the best rates and highest LTV options.

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 generally run about 0.50% to 1.25% above conforming 30-year rates, depending on your DSCR ratio, loan-to-value, and credit score. Run your scenario in the calculator above to see your specific estimated rate.
What are DSCR loan rates today?
Rates change daily with the market. Rather than publish a static average, the calculator above pulls current pricing and estimates your rate based on your actual FICO and LTV. That is a more accurate number than any quoted average.
What is the maximum LTV on a DSCR loan?
Up to 80% LTV on single-family purchases and rate-and-term refinances, and 75% on cash-out refinances. Higher-LTV options depend on credit and DSCR.
What credit score do I need for a DSCR loan?
Most programs require a 660 minimum. Scores of 720 and above qualify for the best rates and highest LTV options.
What is a good DSCR ratio?
1.0 is break-even: rent equals the payment. 1.25 or higher is considered strong and prices better. This program qualifies deals down to a 1.0 DSCR, with no-ratio options for strong-equity scenarios below that.
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?
Most DSCR loans close in 21 to 30 days. Clean files with experienced investors can close faster.
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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