DSCR loan rates typically run 1.0% to 2.5% higher than owner-occupied conventional mortgages because they are non-QM business-purpose loans on investment property. As of late 2025, market DSCR rates range from roughly 7.25% on the strongest scenarios (760+ FICO, 65% LTV, DSCR 1.25+, 5-year prepay) to 9.5%+ on tighter files (660 FICO, 80% LTV, no-ratio, no prepay).
Five factors move your rate: (1) FICO score — 680, 700, 720, 740, 760 are the industry pricing breakpoints; (2) LTV — every 5% below max saves 0.125-0.25%; (3) DSCR — 1.25+ pricing is materially better than 1.00-1.24, and no-ratio adds 0.5-1.0%; (4) prepayment penalty term — a 5-year step-down (5-4-3-2-1) is the base; buying down to 3-year or 0 costs 0.25-0.75%; (5) property type — condos, 2-4 units, and short-term rentals each carry adjustments.
Interest-only options are typically 0.125-0.375% higher but dramatically improve monthly cash flow and qualifying DSCR. 40-year amortization is available on many programs for a similar cost. Points can buy the rate down further — usually 1 point = ~0.25% rate reduction.
Get a live rate quote tailored to your scenario, or use our DSCR calculator to see how each variable moves your payment and qualifying ratio.