Are DSCR loan rates higher than conventional mortgage rates?

Yes, for a comparable borrower. The national 30-year fixed primary residence rate is 6.95% (Freddie Mac PMMS, week of September 17, 2026); conventional investment property loans run roughly 0.50%–1.00% above that, around 7.45%–7.95%; DSCR loans price in a similar band, roughly 7.00%–8.25% depending on profile. Advertised DSCR starting rates below the benchmark are best-case pricing with points, not comparable averages.

Updated 21 September 2026 · Benchmark: Freddie Mac PMMS

Compare DSCR Loan Rates by Lender, State & Credit Score

Q: What are current DSCR loan rates in 2026?

As of September 2026, DSCR loan rates typically run 6.50% to 8.25% for most borrower profiles on 30-year fixed loans. Well-qualified borrowers (740+ FICO, 1.25+ DSCR, 30%+ down) can access rates from 6.375% to 6.875%. Advertised starting rates go as low as 5.875%, but those are best-case quotes for top-credit borrowers who buy points — not averages, and not what most investors are quoted.

Q: How can I get a lower DSCR loan rate?

The most effective ways to lower your DSCR rate: improve your FICO score above 720+, make a 25%+ down payment, accept a prepayment penalty (saves 0.50%–1.0%), choose a property with a strong DSCR ratio, and shop at least 3–5 lenders to compare competing quotes.

Side-by-side DSCR rates from 8 top lenders, typically running 6.50% to 8.25%. Compare by credit score, down payment, and state to find the lowest rate for your investor profile — the national 30-year fixed baseline is 6.95% (Freddie Mac PMMS, week of 17 September).

Primary Residence (baseline)

6.95%

30-yr fixed · Freddie Mac, Sep 17

Best DSCR Rate

6.375%

740+ FICO · 1.25+ DSCR · 30% down

Standard DSCR Rate

7.00%–7.50%

680–719 FICO · 1.0+ DSCR

Lowest Advertised

5.875%*

*Kiavi starting rate · best profile, with points

Rate Table by Borrower Profile

30-year fixed DSCR loans · Single-family investment properties · September 2026

Profile	Min DSCR	FICO	Down Payment	Rate Range
Best-qualified	1.25+	740+	30%+	6.375% – 6.875%
Strong	1.25+	720–739	25%	6.75% – 7.125%
Standard	1.0–1.24	680–719	20–25%	7.00% – 7.50%
Moderate	0.75–0.99	660–679	20%	7.50% – 8.00%
Challenging	Below 0.75	Below 660	20%	8.00% – 8.75%+

The benchmark figure (6.95%, week of 17 September 2026) is Freddie Mac PMMS. The tier ranges themselves are DSCRFinder estimates built from that benchmark plus an observed non-QM spread — they are not Freddie Mac data and not lender quotes. Rates change daily; contact lenders directly for current pricing.

DSCR Loan Rates by State

State-specific factors — property taxes, insurance costs, landlord laws — directly affect your DSCR ratio and the rate you qualify for.

🤠

Texas

Dallas · Houston · Austin · San Antonio

6.50% – 8.25%

High property taxes (2.0–2.5%) reduce DSCR — factor in before applying

View Texas rates →

🌴

Florida

Miami · Tampa · Orlando · Jacksonville

6.50% – 8.25%

Insurance costs are critical — hurricane coverage can reduce DSCR by 0.10–0.25

View Florida rates →

🌊

California

Los Angeles · San Diego · Sacramento · Bay Area

6.50% – 8.25%

High prices compress DSCR — sub-1.0 DSCR lenders often required in coastal markets

View California rates →

🍑

Georgia

Atlanta · Savannah · Augusta · Columbus

6.50% – 8.25%

Low property taxes (0.90–1.20%) and fast eviction process — one of the best DSCR markets

View Georgia rates →

🌵

Arizona

Phoenix · Scottsdale · Mesa · Tucson

6.50% – 8.25%

Among the lowest property taxes in the US (0.65–0.85%) — strong STR market in Scottsdale

View Arizona rates →

More State Rate Guides

Colorado DSCR rates →Illinois DSCR rates →Michigan DSCR rates →Nevada DSCR rates →New York DSCR rates →North Carolina DSCR rates →Ohio DSCR rates →Pennsylvania DSCR rates →Tennessee DSCR rates →Washington DSCR rates →

By City & Property Type

Atlanta, GA DSCR rates →Austin, TX DSCR rates →Dallas–Fort Worth DSCR rates →Houston, TX DSCR rates →Miami, FL DSCR rates →Phoenix, AZ DSCR rates →Condos DSCR rates →Multifamily (2–4 unit) DSCR rates →Short-Term Rentals DSCR rates →

What Affects Your DSCR Rate

Six factors determine your specific rate quote — understanding them helps you negotiate.

Credit Score (FICO)

Highest impact

720+ vs 660 FICO = up to 0.75% rate difference

DSCR Ratio

High impact

1.25+ DSCR = base rate | below 0.75 = +0.50%–0.875%

Down Payment / LTV

High impact

25% down vs 20% = -0.25%–0.50% on your rate

Property Type

Moderate impact

SFR = base | condo = +0.125%–0.375% | STR = +0.25%–0.50%

Prepayment Penalty

High impact

Accepting 3–5yr step-down = -0.50%–1.0% rate reduction

Loan Amount

Low–moderate

Jumbo loans ($1M+) can access better pricing from specialist lenders

Rate stack (September 2026): Primary residence 30-yr fixed 6.95% → conventional investment property ~7.45%–7.95% → DSCR loan, typical borrower ~7.00%–7.50% → DSCR loan, weaker profile ~7.50%–8.25%. Two things make this read oddly at first glance. DSCR pricing overlaps conventional investment pricing rather than sitting cleanly above it, because DSCR lenders compete hard on a smaller, faster-moving book. And the advertised starting rates in our lender table go as low as 5.875% — below the headline benchmark — because those are best-case quotes for top-credit borrowers buying points, not averages like PMMS. Source: Freddie Mac PMMS

Frequently Asked Questions

What are current DSCR loan rates in September 2026?

DSCR loan rates typically run 6.50% to 8.25% for most borrower profiles on 30-year fixed loans. Well-qualified borrowers (740+ FICO, 1.25+ DSCR, 30%+ down) can access rates from 6.375% to 6.875%. Advertised starting rates go as low as 5.875%, but those are best-case quotes for top-credit borrowers who buy points — not averages, and not what most investors are quoted. The baseline is the national 30-year fixed primary residence rate of 6.95% (Freddie Mac PMMS, September 2026).

Are DSCR rates higher than conventional mortgage rates?

Yes, for a comparable borrower. Conventional investment property loans run roughly 0.50%–1.00% above primary residence rates, and DSCR loans price in a similar-to-higher band on top of that. The premium reflects the non-QM nature of DSCR loans and their smaller secondary market.

What DSCR ratio gets the best rate?

A DSCR of 1.25 or higher qualifies for the best rate tier. Ratios between 1.0–1.24 carry a modest premium. Ratios below 1.0 carry significantly higher rates where available.

How can I lower my DSCR loan rate?

The most effective levers: improve FICO score above 720+, make a 25%+ down payment, accept a prepayment penalty (saves 0.50%–1.0%), choose a property with a strong DSCR ratio, and shop at least 3–5 lenders to get competing quotes.