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Investor Loan Finder

DSCR Loans for Rental Properties

Scale your real estate investment portfolio without the hassle of traditional bank underwriting. Qualify for rental property financing based on the property's cash flow, not your personal income.

For business-purpose loans on non-owner-occupied investment properties only.

Current DSCR Loan Rates

DSCR loan rates starting at 5.75% APR

as of September 2026, for a single-family rental purchase with a DSCR of 1.25+, LTV of 65% or lower, 740+ credit score, loan amount of $250,000+, 5-year prepayment penalty, and 2 points paid at closing. Quoted by a current funding lender. Most borrowers will not qualify for the starting rate.

Typical range: 6.75% to 9.5% APR.

What determines your DSCR rate

  • DSCR ratio: A stronger property cash-flow ratio may support different lender pricing.
  • Loan-to-value: Lower leverage can affect the rate options a lender makes available.
  • Credit score: Your credit profile is one factor in the lender's risk assessment.
  • Property type: Property use and type can change eligibility and pricing.
  • Prepayment penalty term: The selected penalty structure can affect the rate.
  • Points paid at closing: Points are part of the total loan pricing and structure.
  • Loan purpose: Purchase and cash-out refinance scenarios may receive different pricing.
Illustrative examples from lender pricing as of September 2026.
TierDSCRLTVCredit scoreRate range (APR)
Excellent1.25+65% or lower740+5.75% to 6.75% APR
Good1.15+70% or lower700+6.75% to 8% APR
Fair1+75% or lower660+8% to 9.5% APR

Investor Loan Finder is a commercial loan brokerage, not a lender, and does not make credit decisions. Rates shown reflect lender pricing as of September 2026, are subject to change without notice, and depend on lender approval, property, and borrower qualifications. Your actual rate and terms will be provided by the lender. Starting rate assumes the qualifications listed above.

DSCR Loan Rate FAQs

What is a good DSCR loan rate?

A good DSCR loan rate depends on the property's cash flow, leverage, credit profile, loan purpose, and other lender requirements. Current lender pricing typically varies across the 6.75% to 9.5% APR range shown above as of September 2026.

Why are DSCR rates higher than conventional mortgage rates?

DSCR loans are business-purpose investor products that qualify primarily from property cash flow instead of traditional personal-income documentation. The pricing reflects the property, leverage, borrower profile, loan structure, and funding lender risk assessment.

How do I qualify for the starting DSCR rate?

The starting rate assumes a single-family rental purchase with a DSCR of 1.25+, LTV of 65% or lower, 740+ credit score, loan amount of

50,000+, 5-year prepayment penalty, and 2 points paid at closing. The funding lender must approve the scenario, and most borrowers will not qualify for the starting rate.

What is a DSCR Loan?

A Debt Service Coverage Ratio (DSCR) loan is a type of non-QM (Non-Qualified Mortgage) real estate investment loan where qualification is based entirely on the cash flow of the subject property.

Traditional mortgages require lenders to calculate your personal debt-to-income (DTI) ratio, requiring W-2s, pay stubs, and years of tax returns. This heavily penalizes self-employed individuals and real estate investors who maximize tax deductions.

DSCR lenders typically evaluate property cash flow rather than personal income documentation. They look at the property's gross rental income compared to its debt obligations (mortgage principal, interest, taxes, insurance, and HOA); eligibility depends on lender guidelines and underwriting.

How the DSCR Ratio is Calculated

The DSCR formula is simple: Gross Monthly Rent ÷ Monthly PITIA (Principal, Interest, Taxes, Insurance, Association dues).

For example: If a property rents for

,000 per month, and the total monthly mortgage payment (PITIA) is
,600, the DSCR is 1.25.

  • DSCR > 1.0: The property generates positive cash flow. (Standard requirement).
  • DSCR = 1.0: The property breaks even.
  • DSCR < 1.0: The property has negative cash flow. (Some lenders offer "No-Ratio" programs for properties below 1.0, requiring higher down payments and stronger credit).

Benefits of DSCR Financing

DSCR loans have revolutionized how investors build wealth:

  • Property-Cash-Flow Focus: Programs typically evaluate property cash flow rather than personal income documentation.
  • Unlimited Properties: Conventional loans cap you at 10 financed properties. DSCR loans have no limits, allowing unlimited portfolio scaling.
  • LLC Friendly: Close in the name of your LLC or Corporation to protect your personal assets.
  • Flexible Terms: Options include 30-year fixed, 40-year fixed, and Interest-Only periods to maximize monthly cash flow.

Frequently Asked Questions

Fast Financing for Investors

  • Property-cash-flow-focused qualification options
  • Close in an LLC or Corporation
  • Funding up to 80% LTV

For business-purpose loans on non-owner-occupied investment properties only.

Subject to underwriting. This is not a commitment to lend.

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For business-purpose loans on non-owner-occupied investment properties only.