Current DSCR Loan Rates (March 2026)
Updated: March 2026
As of March 2026, DSCR loan rates for investment properties start around 6.000% for well-qualified borrowers (740+ FICO, 75% LTV). Rates vary based on credit score, loan-to-value, DSCR ratio, and property type. Below are Defy Mortgage’s current DSCR rate indications across multiple borrower profiles.
If you’re a real estate investor shopping for DSCR loan rates, you’ve come to the right place. Below you’ll find Defy Mortgage’s current DSCR loan rate indications broken down by LTV, credit score, and loan purpose. These are updated monthly, so you always know where the market stands.
As a direct lender, Defy Mortgage sets its own rates. That means no broker markup and no middleman. That means faster quotes, cleaner pricing, and underwriting flexibility that wholesale channels can’t match.
Related resources for real estate investors:
Current DSCR Loan Rates by LTV and Credit Score
The table below shows our starting DSCR loan rates for 30-year fixed investment property loans. These are indicative rates for well-qualified borrowers and are subject to change based on market conditions, property type, and individual borrower profile.
| LTV | 740+ FICO | 720–739 FICO | 700–719 FICO | 680–699 FICO |
|---|---|---|---|---|
| 65% LTV | 5.990% | 6.000% | 6.000% | 6.750% |
| 70% LTV | 6.000% | 6.250% | 6.500% | 6.875% |
| 75% LTV (Purchase) | 6.000% | 6.375% | 6.625% | 7.000% |
| 80% LTV (Purchase) | 6.375% | 6.625% | 6.875% | 7.250% |
| 80% LTV (Rate/Term Refi) | 6.500% | 6.750% | 7.000% | 7.375% |
| 80% LTV (Cash-Out Refi) | 6.750% | 7.000% | 7.250% | 7.625% |
Disclaimer: Rates shown are indicative and subject to change without notice. Actual rates depend on credit score, property type, DSCR ratio, loan amount, prepayment penalty selection, and other factors. Contact Defy Mortgage for a personalized rate quote.
Example rates shown are not a commitment to lend and do not include discount points, fees, or APR. Programs, guidelines, and availability may vary by state.
For our complete Non-QM rate sheet — including bank statement loans, asset depletion, and other programs — visit our Non-QM Rates page.
What Determines Your DSCR Loan Rate?
DSCR loan rates land in the same range as conventional investment property loans, but the underwriting is entirely different. Since lenders qualify you based on the property’s rental income rather than your personal income, the pricing model focuses on investment risk factors. Here are the main variables that affect your rate:
1. Loan-to-Value Ratio (LTV)
LTV is the single biggest rate driver. A larger down payment means a lower rate. At Defy Mortgage, we offer DSCR loans up to 85% LTV on purchases — most lenders cap at 80%. Expect rates to improve significantly as LTV decreases below 75%.
2. Credit Score (FICO)
Higher credit scores earn lower rates. Defy Mortgage offers DSCR loans with FICO scores as low as 640 — well below the 660–680 minimums at most lenders. Borrowers at 740+ will see the best pricing, while scores in the 640–679 range will carry a rate premium.
3. DSCR Ratio
The Debt Service Coverage Ratio measures whether the property’s rental income covers the mortgage payment. A DSCR of 1.25 or higher typically earns the best rates. Defy Mortgage offers options down to a 0.75 DSCR though lower DSCR ratios will carry higher rates to account for the added risk.
4. Property Type
Single-family residences (SFR) generally receive the best pricing. Condos, 2-4 unit properties, condotels, and non-warrantable condos may carry rate adjustments. Defy Mortgage finances all of these property types — including short-term rental (Airbnb/VRBO) properties.
5. Prepayment Penalty
Selecting a longer prepayment penalty period (3-year or 5-year) will typically earn you a lower rate compared to a 1-year or no-prepay option. This is a common trade-off for investors planning to hold properties long-term.
6. Loan Amount
Defy Mortgage has no hard maximum loan limit — each deal is underwritten on its merits. Minimum loan amount is $75,000.
Why Defy Mortgage for DSCR Loan Rates?
Not all DSCR lenders are created equal. Here’s why investors choose Defy Mortgage for the best combination of rates, terms, and flexibility:
- Direct lender pricing: No broker markup. You’re getting rates direct from the source.
- Up to 85% LTV on purchases: Most lenders cap at 75–80%. More leverage means less capital tied up per deal.
- Min DSCR of 0.75: Qualify properties that other lenders reject — including short-term rentals and value-add deals.
- FICO as low as 640: When most lenders require 660–680, Defy opens the door wider.
- No hard loan limit: Defy underwrites each deal on its merits — no arbitrary loan ceiling.
- Fast closings: Streamlined underwriting with closings in as fast as 14–21 days.
- No income verification: DSCR loans qualify on the property’s income — no tax returns, W-2s, or pay stubs required.
- LLC vesting allowed: Purchase directly in your LLC or entity name.
DSCR Loan Rates vs. Conventional Investment Property Rates
Investors often ask how DSCR loan rates compare to conventional mortgage rates for investment properties. Here’s the reality:
Conventional investment property loans typically range from 6.0%–7.5% depending on leverage and borrower profile — the same as Defy’s DSCR starting rate. The difference isn’t the rate. It’s everything else. Conventional loans require full income documentation, DTI calculations, and cap you at 10 financed properties. DSCR loans require none of that. No tax returns. No W-2s. No property limits. For active investors who want to move fast and scale without bureaucratic friction, DSCR wins — at the same price.
For a detailed comparison of top DSCR lenders, see our Griffin Funding vs Angel Oak vs Defy Mortgage analysis.
How to Lock Your DSCR Loan Rate
Once you’ve identified a property and are ready to move forward, here’s how the rate lock process works at Defy Mortgage:
- Initial consultation: Schedule a call with our team. We’ll discuss your investment goals, property details, and pull a soft credit check to give you an accurate rate indication.
- Property analysis: Provide the property address and expected rental income. We’ll calculate the DSCR and confirm your rate and terms.
- Rate lock: Once you’re comfortable with the terms, we lock your rate — typically for 30–45 days. Rate locks protect you from market movements during the closing process.
- Underwriting and closing: Our streamlined underwriting focuses on the property’s income potential, not your personal tax returns. Most DSCR loans close in 14–21 days.
DSCR Loan Rate FAQs
Are DSCR loan rates higher than conventional mortgage rates?
DSCR loan rates today are comparable to conventional investment property rates — both typically fall in the 6.0%–7.5% range depending on leverage and borrower profile. The difference isn’t the rate. Conventional loans require full income docs, DTI calculations, and cap you at 10 properties. DSCR loans skip all of that — faster, simpler, and more scalable.
What is a good DSCR loan rate in 2026?
As of March 2026, competitive DSCR loan rates start in the low-to-mid 6% range for well-qualified borrowers (740+ FICO, 75% LTV or lower). Rates vary by lender, LTV, credit score, and property type. Defy Mortgage is currently pricing DSCR loans starting at 6.000% for purchase at 75% LTV with a 740+ FICO.
What credit score do I need for the best DSCR loan rates?
A 740+ FICO score will earn you the best DSCR loan rates. Scores between 700–739 are still competitive, while borrowers in the 640–699 range can still qualify but will see higher rates. Defy Mortgage accepts FICO scores as low as 640 — below the 660–680 minimums at most DSCR lenders.
How does LTV affect my DSCR loan rate?
LTV is the biggest rate driver for DSCR loans. Lower LTV (larger down payment) means lower rates. For example, a 65% LTV loan will carry a significantly lower rate than an 80% LTV loan. Defy Mortgage offers DSCR loans up to 85% LTV on purchases — most lenders max out at 75–80%.
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, and anyone who doesn't show strong income on paper.
What is the minimum DSCR ratio to qualify?
Many lenders require a DSCR of 1.00 or higher (meaning the property's income must at least cover the mortgage payment). Defy Mortgage stands out by offering DSCR options as low as 0.75 meaning you can qualify properties where the rent doesn't fully cover the payment, which is common in high-appreciation markets or with short-term rental strategies.
Do DSCR loan rates vary by property type?
Yes. Single-family residences (SFR) typically receive the best rates. Condos, 2-4 unit multifamily, condotels, and non-warrantable condos may carry rate adjustments of 0.125–0.500% or more. Short-term rental properties (Airbnb/VRBO) may also see slightly different pricing depending on the lender's appetite for that property type.
How fast can I close on a DSCR loan?
Defy Mortgage can close DSCR loans in as fast as 14–21 days. Because DSCR loans don't require income verification or tax return analysis, the underwriting process is significantly faster than conventional loans. The main timeline drivers are the appraisal, title work, and insurance — not income documentation.
Are DSCR loan rates fixed or adjustable?
Most DSCR loans are structured as 30-year fixed-rate mortgages, though some lenders offer adjustable-rate or interest-only structures. Fixed-rate DSCR loans provide long-term payment stability for rental investors who plan to hold properties for multiple years. Defy Mortgage offers both fixed and interest-only DSCR options.
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.
Example rates shown are not a commitment to lend and do not include discount points, fees, or APR. Rates current as of March 2026 and subject to change based on market conditions, borrower profile, and property details. Programs, guidelines, and availability may vary by state.
Author: Todd Orlando, Co-Founder & CEO of Defy Mortgage — 25 years of experience in Non-QM and investment property lending.