DSCR Direct

Welcome to the March 2026 DSCR Rate Watch - your monthly check on where DSCR loan rates stand, how they have moved, and what to expect going forward. Whether you are locking a rate this week or planning a deal for next quarter, here is what you need to know.

Where Rates Opened March

DSCR rates entered March in roughly the same range they ended February. Best-execution rates for strong scenarios (760+ FICO, 75% LTV, 1.25+ DSCR, 5-year prepay) were hovering around 5.9% to 6.1%. Mid-tier scenarios (720 FICO, 80% LTV, 1.0 DSCR) were in the 6.5% to 6.75% range. There was no dramatic move in either direction heading into the month.

Where Rates Stand Now

As of late March, rates have ticked slightly lower for the best scenarios, with several lenders now pricing below 5.9% for the strongest profiles. Mid-tier scenarios have held steady. The overall movement has been modest - maybe 10 to 15 basis points of improvement at the top end. The rate environment remains favorable for investors, with lender competition keeping pricing tight across the board.

Rate Tier Breakdown by FICO

Here is what you can expect to pay based on your credit score, assuming a 75% LTV purchase with a DSCR of 1.20 and a 5-year prepay. At 760+ FICO, the best rates are in the 5.8% to 6.0% range. At 720-759 FICO, expect roughly 6.1% to 6.4%. At 680-719 FICO, you are looking at 6.5% to 6.9%. At 640-679 FICO, rates typically fall in the 7.0% to 7.5% range. At 600-639 FICO, programs are available but rates are generally 7.5% and up. Each FICO tier represents a meaningful step in pricing, which is why improving your score before applying - even by 20 points - can save you real money.

Product Trends Worth Watching

Interest-only continues to be the biggest trend in DSCR lending. More lenders are offering IO, more investors are choosing it, and the rate premium for IO over fully amortizing has compressed. Six months ago the IO premium was 0.375% to 0.50%. Today it is closer to 0.25% in many cases. The 40-year amortization product is also growing. Some lenders now offer 40-year IO, combining both features for the lowest possible monthly payment. ARM products (5/6 and 7/6) have been less popular as the spread between ARMs and fixed rates has narrowed, making fixed-rate the better value for most borrowers right now.

What to Expect in April

Barring a surprise in Treasury markets or a major economic event, expect DSCR rates to remain in the current range through April. The fundamentals driving DSCR pricing - Treasury yields, credit spreads, and lender competition - are all relatively stable. If you are waiting for a big rate drop to pull the trigger on a deal, that drop is not imminent. If your deal works at current rates, the best time to lock is when you have a property under contract.

How to Use This Information

This rate watch gives you a general sense of the market, but your actual rate depends on your specific scenario. The fastest way to see your exact rate is to run your deal through the pricer at dscrdirect.net. It pulls live pricing from hundreds of DSCR lenders and shows you every available option in seconds. No personal information required.