DSCR Loan Rates Today [January, 2026]

DSCR Loan Rates Today

Based on HomeAbroad’s current DSCR loan rates pricing, as of January 23, 2026, DSCR loan interest rates for US-based investors typically range from 5.99% to 6.24% for standard 30-year fixed DSCR purchase scenarios, assuming par pricing (0 points) and an LTV range between 80% and 65%.

Foreign national DSCR pricing often runs higher and can be around 0.5% above US-based investor pricing, depending on leverage, documentation profile, and loan structure.

What we see often: investors compare rate quotes without realizing one quote includes points while another is at par. That is how “cheap rates” turn expensive at closing.

Current Baseline Rate

Steven Glick,

Director of Mortgage Sales, HomeAbroad

“The rate you see online only becomes useful when it is tied to your LTV, your DSCR coverage, and whether it is a par quote or a points-based quote.”

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How We Update DSCR Rates

To keep rate ranges defensible and true, we track a standard DSCR scenario consistently.

Baseline assumptions

• Loan Type: DSCR (Non-QM) 30-year fixed
• Transaction: Purchase
• Property Use: Long-term rental
• Pricing shown: Par rate (0 points)
• Lock period reference: 30-day lock (unless stated otherwise)
• LTV band used for the quoted range: 80% down to 65%
• DSCR coverage: typically 1.0+ for best execution (No-Ratio programs* vary)

Why this matters

Most DSCR pricing breaks happen at 80%, 75%, 70%, and 65% LTV. After roughly 65% LTV, additional down payment may not create a meaningful pricing break on many rate sheets.

*HomeAbroad's No-Ratio DSCR Program is for properties with a DSCR between 0 and 1. With the No-Ratio program, you can still secure financing, although it will require a slightly larger down payment (a 5% reduction in LTV) and a higher interest rate. This option is ideal for investors with a strong long-term strategy who want to acquire properties that may not immediately generate a 1.0 cash flow ratio.

DSCR Rate Range by LTV (What the Range Actually Means)

The DSCR rate range of 5.99% to 6.24% is best understood as a leverage range.

• 80% LTV (20% down): typically the highest rate band
• 75% LTV (25% down): pricing improves
• 70% LTV (30% down): stronger execution
• 65% LTV (35% down): often close to best band

When you see a DSCR lender publish a “best rate,” it is often the best band of the rate sheet, not the rate most borrowers qualify for.

Important note on pricing breaks: after roughly 65% LTV, additional down payment often does not create a meaningful pricing improvement on many DSCR rate sheets.

Par Rate vs Points (How Rate Quotes Can Be Misleading)

The rates shown on HomeAbroad are based on par pricing, meaning 0 points are required to obtain the quoted rate.

Discount points explained (simple and transparent)

Discount points are prepaid interest. Paying points can reduce your interest rate, but it increases your upfront cost at closing. Many borrowers only see the “lowest rate” headline and miss the fact that the rate requires points to buy it down.

Simple example

If a lender quotes 6.00% but that rate requires 3 points, the borrower pays 3% of the loan amount upfront.

On a $400,000 loan, 3 points equals $12,000 paid at closing.

A pattern we have noticed: a lender can appear “cheaper” on the surface by quoting a rate that requires points, while another lender quotes the par rate transparently.

If you want to compare DSCR quotes correctly, always ask: “Is this rate at par (0 points), or does it require points?“

DSCR Loan Interest Rates vs Conventional Mortgage Rates

DSCR loans are priced differently from conventional loans because underwriting is based primarily on rental cash flow, leverage, and investor execution risk.

For broad context, Freddie Mac’s weekly average 30-year fixed-rate mortgage was 6.09% as of January 22, 2026.

A more useful comparison for DSCR investors is:

Conventional rental mortgage rate (0 points) vs DSCR mortgage rate (0 points)

Why this comparison is better: DSCR is an investor loan, so comparing it to a primary-home conventional rate can distort expectations.

How we benchmark conventional rental rates for this article

• Property Use: rental
• Points: 0 (par pricing)
• Down payment: 20% (80% LTV), 25% (75% LTV), 30% (70% LTV), 35% (65% LTV)
• Term: 30-year fixed

Steven Glick,

Director of Mortgage Sales, HomeAbroad NMLS# 1231769

“Conventional rates give you a market baseline. DSCR rates are really about execution. If the property can carry itself with real cushion, pricing becomes much more competitive.”

Instead of waiting, you can start building equity in your property. If market rates move lower later, refinancing may be an option, subject to eligibility, property performance, and loan terms.

Before moving forward, the key is running the numbers against your investment strategy. When the deal works on fundamentals, interest rate timing becomes secondary. 

Why DSCR Loan Rates Change Week to Week

Even if your deal stays the same, DSCR rates can shift because the broader mortgage market shifts.

In our day-to-day pricing, the biggest drivers are:

• Mortgage-backed securities (MBS) pricing
• Treasury yield movements
• Risk appetite for investor loans
• Property performance expectations (especially for short-term rentals)

What this means for investors: if rates rise, deals that barely qualify on cash flow can flip from “works” to “tight” quickly. Stronger DSCR coverage and lower leverage give you more cushion.

How DSCR Loan Rates Are Calculated (What Actually Impacts Pricing)

DSCR loan rates are not “one-size-fits-all.” At HomeAbroad, we price DSCR loans based on how the property performs, the leverage you want, and how resilient the deal looks under real-world conditions.

Below are the key factors that shape DSCR loan interest rates.

1. DSCR Ratio 

DSCR measures how well rental income covers monthly housing debt.

DSCR = Gross Rent ÷ PITIA
PITIA includes principal, interest, taxes, insurance, and association dues.

Higher DSCR generally supports better pricing because the lender sees a stronger cash flow buffer.

HomeAbroad note: you can still qualify below 1.0 depending on leverage, reserves, and structure. We support No-Ratio DSCR options in eligible cases, often with lower LTV requirements.

To get a quick estimate of your own property’s ratio, you can use our DSCR calculator and see how it may influence the rates you qualify for.

Here is a representation of how DSCR loan rates are adjusted with different DSCR ratios. 

2. Credit Score 

While DSCR loans are qualified based on a property’s rental income rather than personal income, credit history is still reviewed as part of the overall risk assessment.

A stronger credit profile generally supports more competitive pricing, while lower scores may result in rate adjustments that can often be offset with higher equity or stronger cash flow.

At HomeAbroad, we offer DSCR loans for foreign national investors that do not require a US credit history. With our 15+ years of DSCR lending, we focus more on the strength of the rental income, DSCR ratio, and deal structure rather than relying solely on traditional credit benchmarks.

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Below is a tabular representation of how different credit score ranges and LTV affect interest rates.

The table shows the rate adjustments based on credit score and LTV. For example, if your credit score is 700 and the LTV is 70%, we will increase the base rate by 0.5%.  

While there is a minimum credit score requirement of 620 for DSCR loan qualification for domestic clients, international real estate investors do not need US credit score, income, or tax returns.

3. LTV (Loan-to-Value) 

The Loan-to-Value (LTV) ratio shows the percentage of a property that is financed through borrowing. 

For example, an 80% LTV ratio means you borrowed 80% of the property’s purchase price and paid 20% of the down payment.

Technically speaking, lower LTVs reduce risk by increasing equity in the property, which often results in more competitive interest rates. Higher LTVs carry more risk and typically lead to pricing increases.

Down payment strategy is one of the most effective levers investors can control when aiming for better DSCR loan terms.

4. Investor Experience (Helpful, Not Mandatory)

This is no financial metric, but an important one that we consider during DSCR loan application evaluation. A proven track record often signals that an investor understands how to operate rental properties, manage expenses, and stabilize income over time.

A pattern we’ve noticed is that experienced investors tend to move through underwriting faster because they understand documentation, insurance timing, and how rental income is assessed. That familiarity can reduce friction in the process, even though it doesn’t replace the need for a qualifying DSCR.

To be clear, prior investing experience is not mandatory to qualify for a DSCR loan. We regularly work with first-time investors who close successfully as long as the rental income, DSCR ratio, and deal structure meet our guidelines.

5. Short-term Rentals/Airbnb 

Short-term rental properties generate less predictable income due to seasonality, occupancy swings, and local competition. That variability makes our income projections more difficult and increases the overall risk profile.

The reason this matters is that when income is less consistent, we have to price for that uncertainty. Higher risk doesn’t just affect interest rates. It can also translate into higher reserve requirements or additional down payment to offset volatility.

Based on our internal pricing and recent executions, short-term rental DSCR scenarios can price higher than comparable long-term rentals. That spread reflects the added uncertainty in projecting stable cash flow over the life of the loan, especially in seasonal markets. To be clear, the exact difference varies by documentation method, leverage, and coverage strength, so we size each file to the property’s actual income durability rather than a best-case rent assumption.

Steven Glick,

Director of Mortgage Sales, HomeAbroad | NMLS# 1231769

“When investors ask whether short-term rentals are worth the higher rate, I tell them to look at worst-case months, not peak season. If the property still clears DSCR under conservative assumptions, the higher rate usually makes sense. If it doesn’t, long-term rental pricing is often the safer play.”

The trade-off is straightforward. Short-term rentals may offer higher gross revenue, but the increased borrowing costs and stricter underwriting assumptions need to be factored into the overall return to determine whether the strategy makes sense for the deal.

6. Mortgage Type 

The structure of a DSCR loan also affects the interest rate. Common DSCR mortgage types include:

• Fixed-Rate: A fixed-rate DSCR loan has the same interest rate for the entire loan term, typically 30 years, offering stable and predictable monthly payments.
• Adjustable-Rate (ARM): An adjustable-rate DSCR loan starts with a lower introductory rate for a set period, after which the rate adjusts periodically based on market conditions.
• Interest-Only: An interest-only DSCR loan allows you to pay only interest for a defined initial period before principal payments begin. This option may carry a rate premium of around 0.2%–0.5% due to the added risk.

Steven Glick,

Director of Mortgage Sales, HomeAbroad | NMLS# 1231769

“In DSCR lending, interest rates are shaped by how the property performs on paper. When rental income assumptions are realistic, and leverage is structured thoughtfully, deals tend to move more smoothly and price toward the more competitive end.”

At HomeAbroad, we structure DSCR loans around the way you actually plan to run the asset. We review the property’s rent profile, PITIA, reserves, and your hold timeline so the loan terms fit the strategy, not the other way around. The process is fully online, and you work directly with a dedicated mortgage officer from initial sizing through closing and any future refinance planning.

Hear from our client Liam and Emma Thompson, a Canadian couple who bought a Hawaiian Rental Property, about how we helped them.

You may come across DSCR loan offers advertising very low interest rates. Don’t rush into a decision. In DSCR financing, the headline rate alone rarely reflects the true cost or suitability of the loan for your investment strategy.

How to Get a Lower DSCR Loan Rate (Practical Levers)

If your goal is to land closer to the lower end of the DSCR loan rate range, these are the highest impact moves:

1. Strengthen DSCR (increase rent coverage)

• Choose neighborhoods with consistent rent demand
• Avoid thin deals where rent barely clears PITIA

2. Lower leverage

• Bringing more down often reduces pricing friction immediately

3. Select a Property Use that underwrites cleanly

• Long-term rentals tend to price more smoothly than STRs

4. Reduce avoidable risk flags

• Clean documentation, clear leases, stable appraisal support, realistic expenses

Steven Glick,

Director of Mortgage Sales, HomeAbroad

“The best way to earn better pricing is not hunting for a magic rate. It’s building a deal that still works if rents soften or expenses rise. Strong DSCR plus reasonable leverage wins.”

For US-Based Investors: Get Rates and Find Cash-Flow Deals with Ziffy 

Ziffy is our full-stack real estate investment platform for US-based investors. It helps you: 

- Find cash-flow deals 
- Evaluate rental performance 
- Request a personalized term sheet 
- Lock the right loan structure faster

What to Look for When Comparing DSCR Loan Interest Rates

When comparing DSCR loan options, it’s important to evaluate the full structure of the loan, not just the interest rate. Small differences in terms can have a meaningful impact on cash flow, flexibility, and long-term returns.

Here are the key factors to review:

• Interest rate vs APR: APR reflects the interest rate plus certain loan costs and fees, which is why it is often a better total-cost metric when comparing offers side by side.
• Prepayment penalties: Restrictions or fees that limit your ability to refinance or exit early.
• Reserves and Liquidity Requirements: Some terms change based on cash reserves.
• Discount points and lender credits: Discount points are a tradeoff: you pay more at closing to reduce the interest rate. Lender credits are the reverse tradeoff: you accept a higher rate to reduce upfront costs.

From what we see most often with real estate investors, the headline rate rarely determines whether the deal is a long-term win. The distinction is in the execution details: points and lender fees, how the prepay is structured, and how reliably the loan closes on schedule. The formula looks simple, but those line items can move real cash flow and change your exit playbook, especially if you plan to refinance or sell within the first few years.

When we structure DSCR loans at HomeAbroad, we review each deal beyond just the rate. Our loan experts evaluate rental income strength, leverage, reserve requirements, and how the loan fits the investor’s broader strategy, especially for foreign nationals investing in the US for the first time.

This approach helps real estate investors move forward with clarity, confidence, and financing that aligns with how they actually invest in US real estate.

Ready to get started? Apply for a DSCR loan with HomeAbroad and get the best loan terms tailored to your investment goals today.

Pre-qualify for a DSCR Loan in a Few Clicks.
No Paystubs, W2s, or Tax Returns Required.

Get Rate Quote

Frequently Asked Questions

About the author:

Steven Glick is the Director of Mortgage Sales at HomeAbroad and has over a decade of experience in the mortgage industry. As a licensed mortgage originator (NMLS# 1231769), Steven brings deep expertise in loan processing, sales operations, and non-traditional mortgages.

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