DSCR Loan Rates: Current Pricing for Investor Property Loans
Updated: May 2026
DSCR loan rates in May 2026 range from 6.125% to 9.125% depending on FICO score, loan-to-value, and property type. The lowest rates apply to 740+ FICO borrowers at 75% LTV on single-family rentals; higher-leverage and lower-credit scenarios price above 8%.
Defy Mortgage publishes the full DSCR loan rate matrix below — actual quotes on real investor deals, not “starting at” teaser pricing. If you’re an investor underwriting capital allocation decisions, the gap between competitive DSCR pricing and posted DSCR pricing matters. Accurate numbers are how you make accurate decisions.
What are DSCR loan rates?
DSCR Loan Rates — Single-Family Purchase
Anchor scenario: A 740+ FICO borrower at 75% LTV purchase on a single-family rental with a 1.0+ DSCR is priced at 6.125% today. That’s the headline rate — every deal moves up from there based on credit and leverage stack.
| LTV | 640 FICO | 680 FICO | 720 FICO | 740+ FICO |
|---|---|---|---|---|
| 75% | 8.625% | 6.375% | 6.250% | 6.125% |
| 80% | — | 8.375% | 6.375% | 6.250% |
| 85% | — | — | 7.125% | 6.875% |
For comparison: the 30-year conventional rate is currently 6.30% (per Freddie Mac PMMS, week ending April 30, 2026). In certain low-leverage, high-credit scenarios, DSCR pricing can be competitive with — or occasionally below — conventional investment property rates, because the lower-leverage, higher-credit DSCR borrower is genuinely a better-priced risk than the average conventional purchase borrower.
Worked example
DSCR Loan Rates vs. Conventional Investment Property Rates
DSCR loans and conventional investment property loans serve different borrowers but compete on overlapping deals. The pricing comparison depends heavily on the borrower’s stack:
For a high-credit, low-leverage borrower (740+ FICO, 75% LTV), DSCR pricing at 6.125% can run below conventional investment property pricing, which typically prices 50-100 bps above the 6.30% owner-occupied benchmark — putting conventional investment property in the 6.80-7.30% range.
For lower-credit or higher-leverage borrowers, the comparison flips — conventional investment financing may price more aggressively than DSCR if the borrower can document W-2 income and meet conventional DTI requirements.
The structural difference matters more than the rate: conventional investment property loans require personal income documentation and DTI qualification. DSCR loans qualify on the property’s rental income alone. For self-employed investors, foreign nationals, or anyone whose tax returns don’t reflect their actual income, DSCR is often the only viable path regardless of where the rate compares.
DSCR Loan Rates — Single-Family Cash-Out Refinance
DSCR Loan Rates — 2-4 Unit Properties
DSCR Loan Rates — Foreign National
What affects your DSCR loan rate?
Five factors drive the rate you’re quoted on a specific deal:
FICO score. The single largest pricing driver. Defy’s 640 minimum is more flexible than most lenders, but the rate reflects the credit profile — and the spread between 640 and 680 is 200+ bps in some cells.
Loan-to-value (LTV). Higher leverage carries higher rate. The breakpoint between 75% and 80% LTV is wider than you’d see on a smoothed pricing grid. The 85% LTV tier carries another step up.
Debt service coverage ratio. Defy’s minimum DSCR is 0.75 (rental income covers 75% of the mortgage payment). Properties at or above 1.0 DSCR get the headline pricing.
Property type. Single-family rates differ from 2-4 unit. Foreign National pricing is its own program with a separate LTV cap.
Prepayment structure. Standard 5-year step-down prepay (5-4-3-2-1) is built into the rates above. A flat 5% prepay is also available depending on borrower exit timing.
Why the rate matrix has hard breakpoints
What’s not on the rate grid
How Defy compares to other DSCR lenders
Most DSCR lender pages show “rates from 5.99%” or similar — that’s the rate one borrower at one specific stack might get on the right day. It doesn’t tell you what your deal prices at.
We publish the full matrix because:
- Investors making real underwriting decisions need to model rate scenarios accurately
- “Starting at” pricing creates expectation gaps that hurt close rates and broker relationships
- The actual rate is determined by your stack — FICO, LTV, property type, borrower profile — and any lender pretending otherwise is masking how their pricing actually works
If you’re shopping DSCR rates, the honest comparison is matrix-to-matrix, not headline-to-headline. Defy’s pricing on a 740 FICO, 75% LTV, 1.0 DSCR SFR purchase is 6.125%. If a competitor says “starting at 5.99%,” ask them what the 740/75% rate is on their grid. The answer will tell you whether their headline matches their actual pricing.
For broader product context, see DSCR Loans and the full Non-QM Loan suite.
Frequently Asked Questions
Are DSCR loan rates higher than conventional mortgage rates?
DSCR loan rates today are comparable to — and in some scenarios competitive with — conventional investment property rates. Defy's 740+ FICO at 75% LTV anchor of 6.125% sits below typical conventional investment property pricing of 6.80–7.30% (which itself runs 50–100 bps over the 6.30% PMMS owner-occupied benchmark). The structural difference matters more than the rate: DSCR qualifies on rental income, not personal income or DTI, and there's no cap at 10 properties.
What is the minimum DSCR ratio to qualify?
Defy's minimum DSCR ratio is 0.75 — meaning the property's gross rental income covers at least 75% of the mortgage payment. Many lenders require 1.00 or higher (rental income covers the full payment). The 0.75 minimum is a meaningful Defy program flexibility — properties that don't quite cover at conventional underwriting may still close as DSCR loans with us.
What is the minimum FICO score for a DSCR loan at Defy?
Defy's minimum FICO score is 640. At 640, the rate matrix shows 8.625% at 75% LTV — the deal is writeable but priced for the credit profile. Borrowers at 740+ FICO hit the headline 6.125% pricing at 75% LTV. The 700–739 band sits in between (6.250% at 75% LTV). Most competitive DSCR pricing across the lender market requires 680 or 700+ FICO.
Can I get a DSCR loan with no income verification?
Yes. DSCR loans qualify based on the property's rental income, not your personal income. No tax returns, W-2s, or pay stubs are required. The lender calculates the DSCR (rental income divided by mortgage payment) and uses that to determine eligibility. This makes DSCR loans ideal for self-employed investors, business owners, foreign nationals, and anyone whose tax returns don't reflect their actual income.
Are these rates available in all states?
DSCR / business-purpose loans are available in 38 states. Defy is not licensed for residential consumer-purpose lending in most of those states — DSCR is a separate licensing category. NY borrowers — contact a Defy advisor for state-specific eligibility requirements. We don't lend DSCR in OR, ID, NV, UT, AZ, ND, SD, MN, MI, VA, VT, or AK.
Do DSCR loan rates vary by property type?
DSCR rates vary by property type — single-family, 2-4 unit, and Foreign National have separate matrices (see above). Property condition and class can affect underwriting; talk to a Defy advisor for property-specific pricing.
Can foreign nationals qualify for a DSCR loan?
Yes. Foreign National DSCR is a Defy specialty program — non-U.S. citizens can qualify for U.S. investment property financing without a Social Security number, U.S. credit history, or U.S. tax returns. Qualification is based on the property's debt service coverage ratio plus documented foreign income or asset reserves. Maximum LTV is 70%. See the FN matrix above for current pricing.
Can I close in an LLC?
Yes. DSCR loans at Defy are commonly closed in LLC name. The LLC must be properly formed and the borrower personally guarantees the loan.
How fast can Defy close a DSCR loan?
Standard DSCR closing timeline is 14–21 business days from application to funding, assuming clean documentation and a willing seller. Foreign national DSCR runs slightly longer due to additional documentation requirements — typically 21–28 days.
Are there rate locks available?
Yes. Defy offers rate locks of 30, 45, and 60 days. Longer locks (75–90 days) available on some products with extension fee.
See Your DSCR Loan Rate In Less Than 5 Minutes
Stop guessing about rates and get a real quote from a direct lender. Defy Mortgage’s team of DSCR loan specialists can walk you through your options, calculate your property’s DSCR, and provide a rate indication — usually within 24 hours. Most investors receive a DSCR rate indication within 5 minutes.
Last updated May 5, 2026. Rates shown reflect Defy Mortgage pricing as of the date above and are subject to change based on market conditions, secondary marketing, and program updates. Specific quotes available within 24 hours of inquiry.
Author: Todd Orlando, Co-Founder & CEO of Defy Mortgage — 25 years of experience in Non-QM and investment property lending.