Today's DSCR Loan Rates, July 2026
Current DSCR investor rental loan rates by FICO and DSCR ratio as of July 2026. 30 year fixed, ARM, cash out, and foreign national pricing tracked across 50+ active DSCR lender rate sheets. Refreshed weekly.
Sources: Federal Reserve H.15 (10-yr Treasury), MBA CREF Quarterly
What are current DSCR loan rates as of July 2026?
As of July 2026, DSCR investor rental loan rates are 5.95–8.50% (30-yr fixed). Best-tier (760+ FICO, 1.25x+ DSCR, 70% LTV): 5.95–6.75%. Mid-tier 6.50–7.50%. Cash-out refi 6.45–8.95%. Foreign national 7.25–9.50%.
, PeerSense Capital Advisory · Updated July 2026
DSCR Rates by Tier, July 2026
As of
| Program | Current Rate | Term |
|---|---|---|
| DSCR Best-Tier (760+ FICO, 1.25x+ DSCR) | 5.95–6.75% | 30-yr fixed |
| DSCR Mid-Tier (700-759 FICO, 1.10-1.25x DSCR) | 6.50–7.50% | 30-yr fixed |
| DSCR Lower-Tier (660-699 FICO, 1.0-1.10x DSCR) | 7.50–8.50% | 30-yr fixed |
| DSCR Cash-Out Refi | 6.45–8.95% | 30-yr fixed |
| DSCR ARM (5/1, 7/1, 10/1) | 5.45–7.95% | 30-yr ARM |
| DSCR Foreign National | 7.25–9.50% | 30-yr fixed |
| DSCR Jumbo ($1M+) | 6.45–8.25% | 30-yr fixed |
| DSCR Airbnb / Short-Term Rental | 6.95–9.25% | 30-yr fixed |
- DSCR Best-Tier (760+ FICO, 1.25x+ DSCR)5.95–6.75%
- Term
- 30-yr fixed
- Loan Size
- $100K – $3M
- Best For
- Long-hold SFR + 1-4 unit, lowest pricing
- DSCR Mid-Tier (700-759 FICO, 1.10-1.25x DSCR)6.50–7.50%
- Term
- 30-yr fixed
- Loan Size
- $100K – $3M
- Best For
- Most investor purchases
- DSCR Lower-Tier (660-699 FICO, 1.0-1.10x DSCR)7.50–8.50%
- Term
- 30-yr fixed
- Loan Size
- $100K – $2M
- Best For
- New investors, marginal cash flow
- DSCR Cash-Out Refi6.45–8.95%
- Term
- 30-yr fixed
- Loan Size
- $100K – $3M
- Best For
- Equity extraction, BRRRR completion
- DSCR ARM (5/1, 7/1, 10/1)5.45–7.95%
- Term
- 30-yr ARM
- Loan Size
- $100K – $3M
- Best For
- Short-hold, refi-out strategy
- DSCR Foreign National7.25–9.50%
- Term
- 30-yr fixed
- Loan Size
- $150K – $2M
- Best For
- Non-US investor, no SSN required
- DSCR Jumbo ($1M+)6.45–8.25%
- Term
- 30-yr fixed
- Loan Size
- $1M – $5M
- Best For
- High-value SFR, luxury rentals
- DSCR Airbnb / Short-Term Rental6.95–9.25%
- Term
- 30-yr fixed
- Loan Size
- $150K – $2M
- Best For
- STR-eligible markets
Rates indicative as of July 2026 across 50+ active DSCR lender rate sheets tracked by PeerSense. Pricing varies with FICO, DSCR ratio, LTV, points paid, prepay-penalty acceptance, property type, market. Base index loosely tracks 10-yr Treasury (4.38% July 2026) + 175-450 bps spread.
What Changed (July 2026)
- DSCR floor near 5.95%. Top tier institutional non QM rate sheets (760+ FICO, 1.25x+ DSCR) hold steady as MBS spreads remain stable.
- 10-yr Treasury near 4.38%, up modestly from spring levels. DSCR rates loosely track Treasury + 175-450 bps spread; with the index range-bound, lender rate sheets posted minimal movement across FICO tiers.
- Cash-out refi spreads remain tight, gap between purchase and cash-out staying near ~30 bps as DSCR lenders continue chasing refi pipeline volume. Best-tier cash-out 760+ FICO holding at 6.45%.
How Your DSCR Rate Is Actually Calculated: Base Rate + 6 Stacking Adjustments
Most DSCR rate pages publish "6–8%" without showing the math. Here's the real decomposition every institutional DSCR rate sheet uses, generalized from active-lender pricing as of July 2026. Use it to estimate your own rate before getting a quote, and to spot when a quote is mispriced versus market.
Step 1, Base Rate: FICO × LTV Grid (5/6 ARM)
The base rate is set by the intersection of your credit score and loan-to-value. This is the "5/6 ARM, no points, $250K–$1.5M loan size, 5-year step-down prepay" baseline. Everything else adjusts off this number.
| FICO ↓ / LTV → | ≤55% | 55–60% | 60–65% | 65–70% | 70–75% | 75–80% |
|---|---|---|---|---|---|---|
| 760+ | 5.70% | 5.80% | 5.90% | 6.00% | 6.15% | 6.40% |
| 740–759 | 5.80% | 5.90% | 6.00% | 6.05% | 6.20% | 6.45% |
| 720–739 | 5.90% | 6.00% | 6.05% | 6.15% | 6.30% | 6.65% |
| 700–719 | 6.00% | 6.05% | 6.20% | 6.30% | 6.50% | 7.00% |
| 680–699 | 6.15% | 6.20% | 6.40% | 6.50% | 7.00% | N/A |
Color-coded by rate band, emerald (best pricing tier), teal (strong), amber (standard), rose (highest adjustments). Below 680 FICO, expect specialty programs only with 25–50 bps additional adjustment + 65–70% LTV cap. Minimum rate floor across institutional DSCR programs is currently 6.00%.
Step 2, Apply 6 Stacking Adjustments
The base rate from Step 1 is then adjusted by these 6 factors. Each can move your rate up or down independently, and they stack additively. A 740-FICO borrower at 75% LTV starts at 6.20% base, but a 30-yr fixed + 0% origination + $90K loan size + no-prepay + cash-out + condo can stack to 6.20 + 0.20 + 0 + 1.375 + 1.000 + 0.250 + 0.200 = **9.245%**, and most quotes don't show this breakdown.
1Rate Structure
- 5/6 ARM: +0.000 (cheapest)
- 7/6 ARM: +0.100
- 30-yr fixed: +0.200
- Interest-only (IO): +0.250
ARM is cheaper because the lender takes less long-duration risk. 30-yr fixed is the most popular but pays ~20 bps for the fixed-rate certainty.
2Origination Fee (Points)
- 0% origination: +0.000
- 0.5%: −0.150
- 1%: −0.300
- 2%: −0.600
- 3%: −0.800 (cap)
Points buy down rate ~30 bps per 1% paid up front. Worth it on long-hold deals (5+ years); not worth it on flips or 12-mo holds.
3Loan Size
- $2M+: +0.750 (jumbo)
- $1.5M–$2M: +0.250
- $250K–$1.5M: +0.000 (sweet spot)
- $150K–$250K: +0.250
- $100K–$150K: +0.600
- $75K–$100K: +1.375 (small-loan penalty)
The small-loan penalty is the biggest hidden DSCR cost. A $90K Memphis or Detroit rental costs ~1.4% more in rate than the same FICO/LTV at $300K, meaningful for portfolio investors.
4Prepayment Penalty Structure
- 5/5/5/5/5 (5 yrs flat 5%): −0.250
- 3/3/3 (3 yrs flat 3%): −0.250
- 5/4/3/2/1 step-down: +0.000 (default)
- 3/2/1 step-down: +0.250
- 3/0/0 (3 yrs only): +0.500
- 0/0/0 (no prepay): +1.000
"No prepay" costs 1 full point in rate. Long-hold investors take 5-yr step-down for the rate discount. BRRRR / flip investors needing refi flexibility pay the no-prepay premium.
5Program Type / Use of Proceeds
Adjustments stack additively. A cash-out refi on an STR condo at sub-1.0 DSCR / 70% LTV stacks +0.250 + 0.250 + 0.200 + 0.850 = +1.55% on top of base.
6Program-Wide Floors & Hard Limits
- • Minimum rate floor: 6.00% (no DSCR program prices below this regardless of stacking discounts)
- • Reserves: 6 months PITIA in liquid reserves, net of down payment + closing costs
- • Minimum property value: $125K standard ($150K+ in some markets, $100K possible with overlays)
- • 720+ FICO required for cash-out refinance on most institutional programs
- • Property condition C1–C4: no deferred maintenance allowed (C5/C6 → bridge financing required first)
- • State exclusions vary by lender: AK, MN, NE, NV, ND, OR, SD, UT, VT and certain others typically excluded; MS often excluded for IO programs; PA / NM / KS / OH / MD / RI have prepay restrictions
- • Lease status: leased OR unleased ("rent-ready") both acceptable on most programs
Step 3, Worked Example: Stacking the Math
Real-world example. 740 FICO investor, doing a cash-out refinance on a leased single-family rental in Indianapolis.
Deal Profile
- 740 FICO, 75% LTV cash-out refi
- $200,000 loan size
- 30-yr fixed rate (no ARM)
- 1% origination paid at close
- 5-yr step-down prepay (5/4/3/2/1)
- SFR (single-family rental, leased), DSCR 1.18x
Rate Stack
- Base (740 FICO @ 75% LTV): 6.20%
- + 30-yr fixed adjustment: +0.200
- − 1% origination credit: −0.300
- + $200K loan size adjustment: +0.250
- + 5/4/3/2/1 prepay (default): +0.000
- + Cash-out refi (720+ FICO): +0.250
- Final rate: 6.60%
Counterfactuals, What Changes the Quote
- • Drop to 5/6 ARM: 6.40% (−0.20)
- • Pay 2% origination instead of 1%: 6.30% (−0.30)
- • Use 5/5/5/5/5 prepay: 6.35% (−0.25)
- • Same deal but $90K loan: 7.725% (+1.125 small-loan penalty net of size band)
- • Same deal but no prepay: 7.60% (+1.000)
- • Same deal but condo: 6.80% (+0.20)
The same deal, same FICO, same LTV, same property, can quote anywhere from 6.30% to 7.725% depending on which knobs the borrower turns. This is why a single rate quote is meaningless without the underlying structure. Most rate-shopping calls miss this entirely.
DSCR vs Conventional Investor Rates, July 2026
- DSCR (30-yr fixed): 5.95–8.50% (no income docs, qualifies on property cash flow)
- Conventional Investor (Fannie/Freddie): 5.25–7.00% (full-doc, DTI < 45%, max 10 properties)
- Bank Portfolio Investor: 6.50–8.50% (relationship, recourse, full-doc)
- Hard Money / Bridge: 9.50–12.50% (12-mo, asset-based, BRRRR rehab)
How to Get the Lowest DSCR Rate
Pull rate 75-100 bps tighter by stacking these signals: 760+ FICO, 1.25x+ DSCR (rent / PITIA), 70% LTV cap, 3+ years investor experience, 6+ months PITIA reserves, single-family or 2-4 unit residential, 5-yr step-down prepay (5-4-3-2-1), 1.5-2 discount points paid at close, no recent BK / foreclosure / late mortgage, primary US borrower (vs foreign national).
Where to Go Next
Full DSCR program qualification, structure, and lender match details at DSCR Loans. Niche drill-downs at DSCR Airbnb, DSCR LLC, DSCR Cash-Out, DSCR Jumbo, DSCR Foreign National. Run cash-flow numbers in the DSCR Calculator. See peer rate hubs at Commercial Lending Rates Hub.
Current DSCR Rates Frequently Asked Questions
What are current DSCR loan rates (July 2026)?+
As of July 2026, DSCR investor loan rates are 5.95–8.50% (30-yr fixed). Best-tier (760+ FICO, 1.25x+ DSCR, 70% LTV, 3+ years investor experience): 5.95–6.75%. Mid-tier (700-759 FICO, 1.10-1.25x DSCR): 6.50–7.50%. Lower tier 7.50–8.50%. Cash-out refi adds 25-50 bps; foreign national 7.25–9.50%.
What FICO score do I need for the lowest DSCR rate?+
Lowest DSCR rates (5.95% floor in July 2026) require: 760+ FICO, 1.25x+ DSCR, 70% LTV cap, 3+ years investor track record, no recent BK/foreclosure, single-family / 2-4 unit residential. Drops to 720+ FICO at 6.25-6.75%. Below 700, expect 7.0%+ pricing. Cash reserves of 6+ months PITIA reduce rate 10-25 bps.
How is a DSCR loan rate calculated?+
DSCR rate = base index + lender spread. Most DSCR lenders peg to a private rate sheet that loosely tracks 10-yr Treasury (4.38% July 2026) + 175-450 bps spread. Spread depends on FICO, DSCR ratio, LTV, points paid, prepay-penalty acceptance, property type, and investor experience. Some lenders offer 5/1, 7/1, 10/1 ARM options at 25-75 bps tighter than 30-yr fixed.
Can I get a DSCR loan with no points?+
Yes, but rate increases 50-100 bps. July 2026 example: 760 FICO, 1.25x DSCR, 70% LTV, 5-yr step-down prepay: 5.95% with 1.5 points, 6.45% with 0.5 points, 6.95% with no points. Most institutional investors choose 1-2 points for the lowest rate; flippers and short-hold investors prefer no points.
What's the DSCR rate for cash-out refinance?+
July 2026 DSCR cash-out refi rates are 6.45–8.95%, typically 25-50 bps higher than purchase. Best-tier cash-out (760+ FICO, 1.25x+ DSCR, 70% LTV) at 6.45–7.25%. Cash-out is risk-priced higher because property equity is pulled out, increasing leverage. LTV cap on cash-out is usually 70-75%.
What's the DSCR rate for foreign national investors?+
Foreign national DSCR rates July 2026: 7.25–9.50%. No SSN required; lender qualifies on property cash flow + foreign credit reference + 12-mo bank statements + ITIN or passport. LTV typically capped 65-70% (vs 75-80% domestic). Best-tier: 7.25-7.95% for established global investors with US property track record.
Are DSCR rates higher than conventional?+
Yes, DSCR rates (5.95–8.50%) are ~75-150 bps higher than conventional Fannie/Freddie investor loans (5.25–7.00%) because DSCR qualifies on property cash flow rather than borrower DTI. Trade-off: DSCR has no income docs, no DTI cap, no employment verification, and allows unlimited investor properties. Conventional is rate-cheaper but caps at 10 properties + DTI restrictions.
Do DSCR loans have prepayment penalties?+
Most DSCR loans carry 3-5 yr step-down prepayment penalties (e.g., 5-4-3-2-1 or 3-2-1). No-prepay options exist at 50-75 bps higher rate. July 2026 example: 5/1 ARM 760 FICO at 70% LTV, 5.95% with 5-yr 5/4/3/2/1 prepay, 6.45% with 3-yr 3/2/1, 6.75% with no prepay. Long-hold rental investors choose prepay; BRRRR/flip investors avoid it.
What's the minimum DSCR ratio?+
Industry-standard DSCR minimum is 1.0x (rent covers PITIA). July 2026 best-rate tier requires 1.25x+. A handful of specialty programs do no ratio DSCR at 0.75x to 1.0x with a 25 to 50 bps rate add. Below 0.75x DSCR, financing requires bridge, hard-money, or value-add structure (rate 8.0%+).
Who are the top DSCR lenders today?+
There is no single top DSCR lender: the market splits into five archetypes (mainstream institutional non QM, short term rental specialty, small loan specialty, broad credit box specialty, and jumbo plus small multifamily), and each program carries different FICO floors, LTV caps, prepay structures, and property type appetite. The same deal can quote 100 to 200 bps apart across programs, so the lender that is best for one file is wrong for another. PeerSense is an independent capital advisor that matches each deal profile to the program that prices it tightest across 50+ DSCR active relationships.
See Related Rates by Program
PeerSense covers the full commercial capital stack. Indicative levels that lenders in our network have been pricing across these programs, as of July 21, 2026.
SBA 7(a) & 504
5.50–11.75%Up to $5M acquisition / real estate / equipment, 10% down
CMBS Conduit
5.60–7.10%10-yr non-recourse fixed, $5M–$500M+, fully assumable
Bridge Loans
9.00–14.00%12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV
DSCR Investor
5.95–8.50%30-yr fixed rental, qualifies on property cash flow
Equipment Financing
5.50–12.00%Loan, lease, SBA 504, vendor, captive. Section 179 eligible
Hotel Financing
5.85–11.75%CMBS + SBA 504 + bridge + PIP across all flags
Private Credit
7.80–18.00%Non-bank flexibility, unitranche, recap, transitional
Invoice Factoring + ABL
0.5–3.5% / 30dB2B receivables, trucking / staffing / construction / govt
No-Doc CRE
7.50–11.50%Limited-doc commercial, asset-based underwriting
Indicative only, as of July 21, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense does not lend and does not set pricing. What these terms mean.
Editorial integrity: Rates compiled by PeerSense Capital Advisory. PeerSense is a capital advisory firm, not a lender. Content is for educational purposes only. Rates and tier definitions reflect approximate July 2026 conditions and may not reflect current conditions at time of reading. Specific quotes depend on full underwriting; not all borrowers qualify.