DSCR Loan Rates Today: What Investors Are Paying in 2026

Real estate investors face a critical decision when financing investment properties: choosing the right loan product and understanding the rates they'll pay. DSCR loan rates have become a cornerstone of investment property financing, offering flexibility that traditional mortgages simply cannot match. In 2026, these rates reflect a dynamic market shaped by economic conditions, investor demand, and individual borrower profiles.

If you're considering a debt service coverage ratio (DSCR) loan for your next investment property, understanding current DSCR loan rates and how they're calculated is essential to making an informed decision. This guide breaks down what you need to know about DSCR rates today and how they apply to your specific investment strategy.

Understanding DSCR Loan Rates in 2026

DSCR loans have revolutionized investment property financing by allowing borrowers to qualify based on the property's income-generating potential rather than personal income alone. This makes them invaluable for self-employed investors, real estate professionals, and those with non-traditional income streams.

Current DSCR loan rates typically range from 6.5% to 9.5%, depending on several factors unique to your situation and the property itself. Unlike conventional mortgages where rates are relatively standardized, DSCR loan rates vary significantly based on:

• DSCR Ratio: The higher your DSCR, the lower your rate. A 1.25 DSCR typically qualifies for better rates than a 0.75 DSCR.
• Loan-to-Value (LTV): Properties financed with 70% LTV receive better rates than 85% LTV loans.
• Down Payment: Larger down payments (25-30%) position you for the most competitive rates.
• Property Type: Single-family rentals often have better rates than multifamily or commercial properties.
• Credit Score: Even with DSCR loans, credit scores matter. Borrowers with 700+ credit scores receive better pricing.
• Occupancy and Rental History: Stabilized, occupied properties receive better rates than vacant or development properties.

Real-World Examples: DSCR Loan Rates by Scenario

Let's examine how DSCR loan rates actually work across different investment scenarios:

Scenario 1: Strong DSCR with Solid Down Payment

Property Details:

• Purchase Price: $300,000
• Monthly Rental Income: $2,500
• Annual Expenses: $6,000
• Down Payment: 25% ($75,000)
• LTV: 75%

DSCR Calculation:

Annual Net Operating Income (NOI) = ($2,500 × 12) – $6,000 = $24,000

Annual Debt Service = $225,000 × 0.065 ÷ 12 × 12 = approximately $14,625

DSCR = $24,000 ÷ $14,625 = 1.64

With a DSCR of 1.64 and 75% LTV, you'd qualify for rates in the 6.5% to 7.0% range, among the most competitive DSCR loan rates available in 2026. This borrower demonstrates strong cash flow, and lenders reward that with lower pricing.

Scenario 2: Moderate DSCR with Conventional Down Payment

Property Details:

• Purchase Price: $250,000
• Monthly Rental Income: $1,800
• Annual Expenses: $4,800
• Down Payment: 20% ($50,000)
• LTV: 80%

DSCR Calculation:

Annual NOI = ($1,800 × 12) – $4,800 = $16,800

Annual Debt Service = $200,000 × 0.075 ÷ 12 × 12 = approximately $15,000

DSCR = $16,800 ÷ $15,000 = 1.12

This investor qualifies for rates in the 7.25% to 7.75% range. While still competitive, the lower DSCR and higher LTV increase the lender's risk, reflected in the rate premium.

Scenario 3: Lower DSCR, Bank Account Seasoning

Property Details:

• Purchase Price: $200,000
• Monthly Rental Income: $1,200
• Annual Expenses: $3,600
• Down Payment: 15% ($30,000)
• LTV: 85%

DSCR Calculation:

Annual NOI = ($1,200 × 12) – $3,600 = $10,800

Annual Debt Service = $170,000 × 0.083 ÷ 12 × 12 = approximately $14,110

DSCR = $10,800 ÷ $14,110 = 0.77

With a sub-1.0 DSCR (meaning the property's income doesn't fully cover debt service), DSCR loan rates climb to the 8.0% to 9.0% range. Lenders offset higher risk with higher compensation. However, this borrower may still qualify if they have substantial reserves or additional income sources.

Factors Influencing DSCR Loan Rates Today

Market Conditions: The broader economic environment, Fed policy, and inflation expectations directly impact all mortgage rates, including DSCR loans. In 2026, rates remain elevated compared to 2020-2021 levels, but have stabilized.

Lender Competition: As more lenders enter the DSCR space, competition has tightened pricing for qualified borrowers. Shopping around with multiple lenders can yield rate differences of 0.5% to 1.0%.

Occupancy Status: Owner-occupied properties receive slightly different rates than non-owner-occupied investments. Non-owner-occupied investment properties typically carry rates 0.25% to 0.50% higher.

Reserves and Liquidity: Borrowers with 6-12 months of PITI (principal, interest, taxes, insurance) in reserves qualify for better DSCR loan rates because lenders view them as lower risk.

Comparison: DSCR Loans vs. Conventional Investment Mortgages

DSCR loans typically cost 0.5% to 1.5% more than conventional investment mortgages, but offer significant advantages:

• No personal income documentation required – Self-employed investors and those with irregular income qualify more easily
• Qualification based on property income – Your investment property's performance matters more than your W-2
• Flexible underwriting – Gift funds, bank statements, and alternative documentation accepted
• Portfolio lending available – Some lenders allow multiple DSCR loans under one portfolio

Calculate Your DSCR and Get Started

Ready to see if your investment property qualifies for a DSCR loan? Use our free DSCR Calculator to instantly calculate your debt service coverage ratio and explore current rate scenarios.

For personalized lending guidance tailored to your investment strategy, Truss Financial Group specializes in DSCR loans, bank statement loans, and creative financing solutions for real estate investors and self-employed borrowers.