DSCR Direct

Every month we highlight the best rate scenarios from the DSCR Direct pricer to show what is actually available in the market. These are real rates from real lenders for specific loan scenarios. Your rate will depend on your exact profile, but these examples show what is possible when you compare hundreds of lenders at once.

Scenario 1: Strong Purchase - 5.875%

Purchase of a single-family rental at $400,000. Loan amount $300,000 (75% LTV). FICO 780. DSCR 1.30. 30-year fixed with 5-year prepayment penalty. Rate: 5.875%. Monthly P&I: approximately $1,774. This is the gold standard scenario - high credit, moderate leverage, strong cash flow, and willingness to take a 5-year prepay. Multiple lenders are competing aggressively at this tier.

Scenario 2: Cash-Out Refinance - 6.25%

Cash-out refinance on a single-family property valued at $350,000. Loan amount $262,500 (75% LTV). FICO 740. DSCR 1.15. 30-year fixed with 3-year prepay. Rate: 6.25%. Monthly P&I: approximately $1,616. Cash-out refinances typically carry a rate premium over purchases, but at 75% LTV with a 740 score, pricing is still very competitive. This investor is pulling out equity while keeping the payment manageable.

Scenario 3: Lower Credit Purchase - 6.875%

Purchase of a duplex at $325,000. Loan amount $260,000 (80% LTV). FICO 660. DSCR 1.10. 30-year fixed with 5-year prepay. Rate: 6.875%. Monthly P&I: approximately $1,708. A 660 FICO at 80% LTV is not a slam dunk scenario, but programs are readily available. The rate premium over the 780 FICO scenario is about 1% - meaningful, but the deal still works if the property cash flows. DSCR loans are available down to 600 FICO.

Scenario 4: Interest-Only Purchase - 6.125%

Purchase of a single-family rental at $375,000. Loan amount $281,250 (75% LTV). FICO 760. DSCR 1.40 (boosted by IO payments). 30-year IO with 5-year prepay. Rate: 6.125%. Monthly IO payment: approximately $1,436. Interest-only payments significantly lower the monthly obligation, which boosts DSCR and cash flow. The rate premium for IO is modest - only about 0.25% over the fully amortizing equivalent. This is why IO is growing so fast in the DSCR space.

Scenario 5: Small Balance Loan - 7.125%

Purchase of a single-family rental at $175,000. Loan amount $140,000 (80% LTV). FICO 720. DSCR 1.20. 30-year fixed with 3-year prepay. Rate: 7.125%. Monthly P&I: approximately $943. Small balance DSCR loans (under $150K) typically carry a rate premium because lenders earn less revenue on smaller loans. The rate is higher but the dollar payment is low, and if the property rents for $1,200 or more, the deal still cash flows nicely.

Scenario 6: High Leverage Cash-Out - 7.375%

Cash-out refinance on a condo valued at $300,000. Loan amount $240,000 (80% LTV). FICO 700. DSCR 1.00. 30-year fixed with 5-year prepay. Rate: 7.375%. Monthly P&I: approximately $1,658. This scenario stacks several pricing hits - cash-out, 80% LTV, condo, 700 FICO, and a 1.0 DSCR. Even so, programs are available and the rate is workable. This is where comparison shopping matters most - the spread between lenders on layered-risk scenarios can be over 1%.

How These Rates Were Found

Every rate in this article was sourced by running the scenario through DSCR Direct, which compares hundreds of wholesale DSCR lenders in real time. Your exact rate will depend on your specific profile and current market conditions. To see what rate you qualify for, enter your scenario at dscrdirect.net - it takes less than 30 seconds and requires no personal information.