DSCR Loan Rates in 2026: What Investors Are Actually Paying
Current DSCR loan rates are a range, not a single number. Here is how lender floors, LTV, fico, DSCR, and prepay terms shape what investors really pay.
Part of the DSCR Loans guideThe wrong way to shop DSCR loan rates is to ask, "What is the rate today?" The right question is, "What rate am I likely to get for my exact leverage, fico, DSCR ratio, reserves, and prepayment structure?" In 2026, that difference is wide enough to misprice a deal if you rely on headline quotes.
TL;DR: Current lender pages show wide DSCR floors: Griffin Funding publishes about 5.875% to 7.375% for qualified borrowers in March 2026, Kiavi markets rates as low as 6.5%, Easy Street starts at 5.75%, and CoreVest starts at 8%. Actual investor pricing lands above or inside those floors depending on leverage, DSCR, points, and prepay.
What are current DSCR rate floors showing?
Here is the cleanest current lender snapshot available from official pages:
| Lender | Published rate signal | Notes |
|---|---|---|
| Griffin Funding | 5.875% to 7.375% | March 2026 update; qualified borrowers |
| Easy Street Capital | Starts at 5.75% | Published on EasyRent page |
| Kiavi | Rates as low as 6.5% | Rental loan page also markets up to 80% LTV |
| CoreVest | Starts at 8% | Single-rental page |
Those quotes are useful, but only as floor markers. They tell you where the market opens, not where most files close.
Why the quote you get may be higher than the headline
DSCR lenders price risk in layers. The biggest rate movers are:
- Loan-to-value
- Fico
- DSCR ratio
- Property type
- Prepayment penalty
- Loan size
- Cash-out versus purchase
That is why two investors shopping on the same day can get meaningfully different pricing even when both are "approved." The lower-leverage borrower with better fico, stronger DSCR, and a 5-year prepay term may sit much closer to the teaser rate. The borderline borrower with thin cash flow and no appetite for prepay will not.
What are investors actually paying?
Based on the current lender disclosures above, most real execution is best thought of as a band:
| File quality | Realistic read on pricing |
|---|---|
| Best-case clean file | Mid-6s can be possible when leverage and fico are strong |
| Average stabilized rental | High-6s to mid-7s is a more realistic planning range |
| Tougher file or tougher lender box | Mid-7s to low-8s is not unusual |
This is not a universal market index. It is a decision tool. If your pro forma only works at the lowest teaser rate, the deal is too thin.
How prepayment penalties distort headline rate shopping
Many DSCR lenders can sharpen the rate if you accept a stronger prepayment penalty. That is not automatically bad. If you know you are holding the asset long enough, trading flexibility for rate can make sense. The mistake is comparing one quote with a 5-year prepay against another with a shorter or softer stepdown and pretending the rate delta is pure lender value.
When you shop, ask for four things on every term sheet:
- Rate
- Total points and lender fees
- Prepay structure
- Reserve requirement
Without those four, you are not comparing quotes. You are comparing advertising.
How DSCR itself changes pricing
A stronger DSCR ratio usually leads to better execution because the lender sees more room between rent and payment. CoreVest publishes a 1.0x DSCR product, while many lenders still price more comfortably above 1.20 to 1.25. That spread creates a hidden rate effect: the same property can move from "approved but expensive" to "approved and competitive" if the rent support improves or the leverage drops.
That is why the cheapest path is not always a different lender. Sometimes it is a better file.
Rate shopping framework investors should use
Use this order:
- Model your deal at a conservative rate, not the floor.
- Gather three quotes with matched assumptions.
- Normalize for points, prepay, and reserves.
- Decide whether the best lender for your deal is optimizing rate, flexibility, or certainty of close.
If the deal is a purchase, certainty of close often matters more than winning 25 basis points. If it is a refinance, optionality and prepay language deserve much more weight.
Where this leaves conventional financing
Conventional investment-property loans can still beat DSCR on raw pricing when your personal file is strong enough. That is why current rate research should not stop at "what are DSCR lenders quoting?" It should also ask whether the property belongs in a different loan box.
Use our DSCR vs conventional mortgage comparison if you want that decision framework.
Final take
The best current answer to "what are DSCR rates?" is that official lender floors currently span from the high-5s to about 8%, but most investors should underwrite their deals assuming something worse than the best teaser quote. A deal that still works under that discipline is a deal worth shopping.
Frequently asked questions
Are DSCR rates always higher than conventional rates?
Usually yes, because you are paying for underwriting flexibility. That gap can narrow for borrowers who do not fit conforming rules well.
Can a lower prepayment penalty mean a higher rate?
Yes. Lenders often sharpen the note rate when you accept a longer or tougher prepayment structure.
Should I lock a DSCR rate early?
That depends on the lender and the deal timeline. Compare lock cost, extension rules, and appraisal timing before deciding.
Sources
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