DSCR Direct

Here is your March 2026 DSCR market update. Whether you are actively shopping for a loan or just keeping an eye on the market, this is where rates stand right now and what trends are shaping the DSCR lending space.

Current DSCR Rates

As of late March 2026, the best DSCR rates for strong scenarios are in the 5.8% to 6.0% range. A "strong scenario" means 760+ FICO, 75% LTV or lower, DSCR of 1.25+, single-family property, and a 5-year prepayment penalty. More typical scenarios - 720 FICO, 80% LTV, DSCR around 1.0 - are seeing rates in the mid-6% range. Lower credit or higher leverage scenarios push into the 7% to 8% range. These are wholesale rates from across the full lender market.

Rate Trend: Relatively Stable

DSCR rates have been relatively stable over the past several weeks. After some volatility earlier in the year, lender pricing has settled into a consistent range. The 10-year Treasury, which heavily influences DSCR pricing, has been trading in a tight band. Absent a major economic surprise, expect rates to stay in this range through April. That said, DSCR rates can move quickly when Treasury yields shift, so if you have a deal that works at current pricing, there is no guaranteed advantage to waiting.

Lender Competition Is Strong

The DSCR lending market continues to be highly competitive, which is great news for borrowers. Hundreds of lenders are actively competing for DSCR business, and that competition is keeping rates tight and pushing lenders to offer more flexible terms. We are seeing more lenders willing to push LTV limits, reduce reserve requirements, and offer promotional pricing on specific product types. The best way to take advantage of this competition is to compare rates across the full market before committing.

IO and 40-Year Products Growing in Popularity

Two product trends stand out in March 2026. First, interest-only DSCR loans continue to grow in popularity. More investors are choosing IO for the improved cash flow and higher DSCR ratio it creates. IO rate premiums have also compressed - the spread between IO and fully amortizing is smaller than it was a year ago, making IO an even better value. Second, 40-year amortization products are gaining traction. A 40-year term lowers the monthly payment compared to a 30-year, improving both cash flow and DSCR. Several major non-QM lenders have launched or expanded their 40-year programs in recent months.

Best Scenarios Right Now

If you want the absolute lowest rate available, here is what the ideal scenario looks like in March 2026: purchase or rate-term refinance (not cash-out), 75% LTV or lower, 760+ FICO, DSCR above 1.25, single-family detached property, 30-year fixed with 5-year prepay, loan amount between $200K and $500K. Hit all of those marks and you are looking at rates in the 5.8% to 6.0% range from the most competitive lenders. Miss a few of them and you are still likely under 7% if your credit and LTV are reasonable.

Advice for Investors

If you have a deal that pencils at current rates, move on it. Rates have been stable but there is no guarantee they will stay here. If you are waiting for rates to drop significantly before buying, you may be waiting a while - and missing cash flow in the meantime. The investors who are winning right now are the ones who find properties that cash flow at today's rates and lock in. If rates drop later, you can always refinance. You cannot go back and buy the property you passed on.

Check Your Rate

For the most current pricing on your specific scenario, run it through the pricer at dscrdirect.net. You will see live rates from hundreds of lenders in seconds. Check dscrdirect.net/rates for a snapshot of where the market stands today.