Disclaimer: Rate data updated April 14, 2026. Rates change daily — contact lenders directly for current quotes. DSCRFinder.com does not guarantee rate accuracy.
DSCR Loan Rates for Investment Condos — 2026
DSCR loans are available for investment condominiums, but condo financing comes with unique complexities: warrantability issues, HOA fees that impact DSCR calculations, and lender restrictions that don't apply to single-family homes. Understanding these factors is essential before pursuing a condo DSCR loan.
As of April 2026, DSCR rates for investment condos run 7.40% to 9.25% — typically 0.125%–0.50% above comparable SFR rates depending on condo type and warrantability.
Condo DSCR Rate Table — April 2026
| Condo Type | Rate vs. SFR | Typical Rate Range | |---|---|---| | Warrantable condo (standard) | +0.125% – +0.25% | 7.25% – 8.50% | | Non-warrantable condo | +0.25% – +0.50% | 7.40% – 9.00% | | Condotel / resort condo | +0.50% – +1.00% | 8.00% – 9.25% | | Florida high-rise (non-warrantable) | +0.375% – +0.75% | 7.50% – 9.25% |
Warrantable vs. Non-Warrantable Condos
This is the most important concept for condo DSCR financing.
Warrantable Condos
A warrantable condo meets Fannie Mae/Freddie Mac guidelines:
- No single entity owns more than 10% of units (20% for smaller projects)
- At least 50% of units are owner-occupied or second homes
- No pending litigation involving the HOA
- No active commercial space exceeding 35% of floor area
- HOA is in good financial standing
Warrantable condos are easier to finance with most DSCR lenders and carry lower rate premiums.
Non-Warrantable Condos
A non-warrantable condo fails one or more Fannie/Freddie guidelines. This is very common in:
- Florida high-rises (high investor concentration)
- Resort/vacation properties
- New construction (not yet 50% sold)
- Buildings with pending litigation or special assessments
- Buildings with commercial space above 35%
Non-warrantable condos require specialty lenders. Rate premiums of 0.25%–0.75% are typical.
How HOA Fees Impact DSCR for Condos
HOA fees are included in PITIA — the denominator of your DSCR calculation. High HOA fees can dramatically reduce your DSCR ratio.
Example: | Component | SFR | Miami High-Rise Condo | |---|---|---| | Monthly rent | $2,400 | $2,600 | | P&I | $1,600 | $1,600 | | Taxes | $350 | $350 | | Insurance | $150 | $400 (wind policy) | | HOA | $0 | $800 | | Total PITIA | $2,100 | $3,150 | | DSCR | 1.14 | 0.83 |
The same rent level produces a qualifying DSCR for the SFR but a sub-1.0 DSCR for the condo — requiring a sub-1.0 lender and a higher rate.
Always factor HOA fees into your DSCR calculation before making an offer.
Best and Worst Condo Markets for DSCR Loans
Best Condo Markets
- Las Vegas, NV: Many warrantable high-rises, reasonable HOA fees, strong rental demand
- Atlanta, GA: Many suburban condo communities with moderate HOAs
- Nashville, TN: Growing condo market with manageable HOA structures
Most Challenging Condo Markets
- Miami, FL: Very high HOA fees + high insurance + warrantability issues = very low DSCR ratios
- NYC, NY: Rent-stabilized co-ops and condos with complex regulations
- San Francisco, CA: High prices + HOA fees + tenant-friendly laws = very challenging DSCR
DSCR Loan Requirements for Condos
| Requirement | Standard Condo | Non-Warrantable Condo | |---|---|---| | Minimum DSCR | 0.75 – 1.0 | 0.75 – 1.0 | | Minimum FICO | 660 – 680 | 680 – 720 | | Down payment | 20% – 25% | 25% – 30% | | Max LTV | 75% – 80% | 70% – 75% | | Lender options | Most DSCR lenders | Specialty lenders only |
Condotel / Resort Condo DSCR Loans
Condotels (condo-hotels) are a special category requiring dedicated lenders. Features:
- Located in resort or hotel buildings with front-desk rental programs
- Very high nightly rates but high expenses and management fees
- Most traditional DSCR lenders won't touch condotels
- Specialty lenders (Griffin Funding, some portfolio lenders) may offer condotel DSCR programs
- Expect higher rates (+0.50%–1.0%) and stricter requirements
How to Find DSCR Lenders for Condos
When shopping for condo DSCR loans, ask specifically:
- Do you lend on non-warrantable condos?
- What's the rate premium for non-warrantable vs. warrantable?
- Do you lend in buildings with high investor concentration?
- What documentation do you need for condo HOA review?
- Do you have any building blacklists in my target market?
Use our lender comparison to identify condo-friendly DSCR lenders.
Frequently Asked Questions
Can I get a DSCR loan for a condo in Florida? Yes, but Florida condos are notoriously challenging for DSCR financing due to warrantability issues, high HOA fees, and high insurance costs. Expect limited lender options and higher rates for Florida high-rise condos.
How do I know if a condo is warrantable? Ask your real estate agent or lender to review the HOA questionnaire (Form 1076). Your lender will order this review as part of the underwriting process.
Do HOA special assessments affect DSCR loan approval? Yes. Pending special assessments can affect warrantability and may be included in PITIA calculations. Some lenders won't lend in buildings with active special assessments above a certain threshold.
Can I use Airbnb income for a condo DSCR loan? It depends on the lender and whether the HOA/building allows short-term rentals. Many condo HOAs prohibit STRs regardless of local law — verify HOA rules before purchasing for STR purposes.
Related: Current DSCR Rates April 2026 | DSCR Rates Florida | DSCR Loans for STR | Compare Lenders
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