DSCR Loan Interest Rates: What Determines Your Rate

DSCR Basics · The DSCR Resource Center Editorial Team · Updated May 2026

DSCR loan rates are typically higher than conventional owner-occupied rates, reflecting the non-QM, business-purpose nature of the product and reduced income documentation. Several factors drive where your specific rate lands.

Credit score

As with most mortgage products, higher credit scores generally unlock better pricing tiers.

DSCR ratio

A stronger DSCR (1.20+) often qualifies for better pricing than a ratio near or below 1.0, which may carry a rate adjustment.

Loan-to-value

A larger down payment (lower LTV) typically improves your rate, since it reduces the lender's risk.

Property type and use

Short-term rentals, condos, and certain multifamily configurations can carry different pricing than a standard single-family long-term rental.

Rate locks and market movement

Because rates move with broader capital markets, the specific number you're quoted will vary week to week and lender to lender — which is exactly why comparing multiple lender offers matters.

We don't set or guarantee rates — participating lenders do. Get matched to compare current offers for your scenario.

Educational content only — not financial, legal, or tax advice. The DSCR Resource Center is not a lender. Loan programs, rates, and eligibility are determined by independent third-party lenders and are subject to change.
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