Live DSCR Loan Rates (Real-Time)

If you’re financing a rental property, having up to date DSCR loan rates can help you secure better terms and pick the DSCR financing option that’s best for you. 

Debt Service Coverage Ratio (DSCR) loans are built for real estate investors and qualify borrowers based on property rental income rather than personal income, making them one of the most flexible financing options available for rental properties.

This article provides up to date DSCR loan rates, explains how DSCR loan rates are calculated, instructions on how to minimize your DSCR loan rate, and how to get a DSCR loan quote for a specific rental property.

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How Are DSCR Loan Rates Calculated?

DSCR loan rates are indexed against a market base rate (such as the 5-Year U.S. Treasury Yield or 2-Year U.S. Treasury Yield), where the DSCR loan rate is equal to the Base Rate + Credit Risk Premium. 

DSCR Loan Rate = U.S. 2YR Year Treasury Yield + Credit Premium

Ultimately, all mortgage products are investments for the lenders who write the loans. As such, the rates on those mortgages reflect the base rate for a “risk free” debt investment + any additional risks. 

Due to the security and minimal risk of the U.S. Treasury Bonds, the US 2 YR and 5 YR Treasury Bond Yield is used as the base rate for most DSCR loans.

Then, various premiums are added to the base mortgage rate, based on the perceived risk of the loan. The factors which influence this “credit premium” are:

• Debt Service Coverage Ratio (DSCR): Higher DSCR ratios lead to lower rates. Beyond a 1.2 DSCR obtains the lowest rate.
• Credit Score: Ridge Street requires a minimum credit score of 660, but stronger credit improves the rate, with pricing improvements every 20 FICO points up to 760.
• Loan-to-Value Ratio (LTV): Lower LTVs indicate less leverage and reduce rate premiums. For example, a 75% LTV loan will have a lower rate than an 80% LTV loan.
• Loan Size: Small loans below $100K have marginally higher rates. Since the loan balance is smaller, lenders typically charge slightly higher rates (+0.5%) to give themselves enough margin to make the loans economically feasible.
• Pre-payment Structure: Loans with higher prepayment penalties offer lower rates. The standard DSCR loan pre-payment penalty structure is a 5YR (5/4/3/2/1) with 3YR, 1 YR, and 0YR PPP’s also available.
• Property Type: Single family homes have the lowest DSCR rates, followed by 2-4 Unit multifamily, followed by 5+ Unit Multifamily DSCR loans. 
• Market Conditions: As the index rates move, the DSCR loan rates move accordingly.
• Lender Efficiency: Lenders with direct access to institutional capital, like Ridge Street, often offer tighter spreads and fewer added fees.

DSCR Loan Rate Trends (2025 Snapshot)

Throughout 2025, DSCR loan rates have largely followed the broader trend of the 5-Year U.S. Treasury yield, which remains the benchmark for most non-QM investment loan products.

After the rapid rate increases of the previous two years, the market has entered a period of relative stability, giving investors a clearer picture of financing costs for the year ahead. (Source: U.S. Department of the Treasury Par Yield Curve Rates).

While national DSCR averages currently sit in the low-7% range, many investors are seeing improved pricing through lenders that operate efficiently and avoid secondary-market markups.

This dynamic has helped narrow the gap between DSCR and conventional investor loans, especially for borrowers with strong credit and consistent property performance.

Looking ahead, rates are expected to stay in the 6.5%-7.5% range as inflation cools and credit spreads stabilize. For real estate investors, that means the focus shifts from “waiting for lower rates” to purchasing and refinancing more properties.

Which Lender Has the Best Current DSCR Loan Rates?

Comparing DSCR loan rates across multiple lenders can be difficult. Each lender prices loans slightly differently based on their underwriting model and risk appetite. While some focus on flexibility or fast closings, others emphasize rate competitiveness, but the lowest advertised rate doesn’t always translate to the best deal.

From our review, the Top 3 DSCR Lenders for low rates in the U.S. are:

1. Ridge Street Capital: Offers low rate DSCR loans nationwide, allowing real estate investors to qualify based on rental income with minimal credit spreads for high FICO Borrowers.
2. New Silver: Provides tech-driven DSCR loans for long-term rentals, featuring a fully online application with solid rates.
3. Angel Oak: One of the largest DSCR lenders in the U.S. with most loans going through their wholesale division, Angel Oak offers excellent rates for mortgage brokers and bankers. 

You can check your DSCR loan rate today by submitting a quick application here.

DSCR Loan Rates vs. Conventional Loan Rates

While both loan types serve real estate investors, DSCR loans and conventional investor mortgages differ in how they’re qualified, structured, and priced. The distinction often comes down to flexibility versus documentation.

While DSCR loans may price slightly higher than conventional mortgages, they remove the biggest barrier to scaling a rental portfolio: personal income qualification. For investors with multiple properties or non-traditional income sources, that flexibility often outweighs the marginal rate difference.

Positioning Your Portfolio for Better DSCR Rates

Once you understand what drives DSCR loan pricing, the next step is managing the levers you can control. Investors who treat financing as a portfolio strategy, not a one-off transaction, tend to secure stronger long-term terms.

A few key approaches include the following:

• Optimize Property Cash Flow: Investors should target a DSCR ratio above 1.2. Some ways to increase your DSCR are to lower your insurance costs, lower your leverage, pursue properties with higher rent-to-price ratios, and for refinance transactions - increase tenants’ rents over time.
• Refinance Strategically: Monitor the trends in the US 2 YR and 5 YR Treasury and refinance when Treasury yields are down.
• Maintain Strong Credit: Even incremental improvements in credit score can meaningfully reduce your rate.
• Work with an Institutional Lender: Platforms like Ridge Street that originate loans with institutional capital often offer lower pricing.

Ready to Lock In a Competitive DSCR Rate?

DSCR loan rates remain one of the most important variables in building a profitable rental portfolio. By understanding how lenders price risk and by working with a direct-capital partner like Ridge Street, investors can access competitive rates, reduce closing costs, and structure financing that supports long-term growth.

Explore Ridge Street’s DSCR loan programs by requesting a quote or by getting pre-approved.

DSCR Loan Rates FAQs

What is the average DSCR loan rate right now?

As of Q4 2025, current DSCR loan interest rates for income-producing properties typically range from 6.5% to 7.5%, depending on the borrower’s credit score, loan amount, and DSCR ratio.

Borrowers with a good credit score, larger down payment, and strong property cash flow can often secure the best DSCR loan rates and more favorable loan terms.

Why are DSCR loan rates higher than conventional mortgage rates?

DSCR loan programs are designed for real estate investments where qualification is based on net operating income rather than personal income. Since lenders assume additional risk when approving loans solely on property cash flow, DSCR loans generally carry a slightly higher borrowing cost. 

Do cash-out refinances have higher DSCR loan rates?

Yes, cash-out DSCR refinances typically price a bit higher (+0.25% to +0.5%) than purchase loans because they reduce the property’s equity position and the valuation is based on an appraisal rather than the true purchase transaction.