What rates are you seeing on DSCR loans?

If you're an investor exploring DSCR loans (Debt Service Coverage Ratio loans), you've probably asked: What kind of rates can I expect right now? At Key Real Estate Capital, we help real estate investors across the country secure flexible financing tailored to their goals. In this guide, we’ll break down current DSCR loan rates, how they’re determined, and how to get the best terms for your next investment property.

What Are DSCR Loans and Why Do Rates Matter?

A DSCR loan is a type of non-QM loan designed for real estate investors. Instead of verifying your income with W-2s or tax returns, lenders use your property's income to determine eligibility.

DSCR loans are popular for long-term rentals, short-term rentals, and mixed-use properties. Understanding your DSCR loan rate is critical because it impacts monthly payments, cash flow, and your long-term ROI. The lower your rate, the higher your profit margin.

What Are Today’s DSCR Loan Rates?

As of mid-2025, DSCR loan rates typically range from 7.25% to 9.5%, depending on a range of factors:

• Loan-to-value ratio (LTV)
• Your credit score
• Property type and location
• Debt service coverage ratio (1.0 minimum, 1.25+ preferred)
• Fixed vs adjustable rate

Investors financing properties in Fresno, Anaheim, or Santa Ana may see slightly different rates depending on local demand and property type. Use our free Loan Rate Calculator to get a personalized estimate.

How Are DSCR Loan Rates Determined?

Unlike conventional loans, DSCR loans are evaluated based on the property's ability to cover its debt. Here’s what lenders look at:

• Your DSCR ratio (Net Operating Income / Annual Debt Service)
• Credit history and FICO score
• Experience as a real estate investor
• Appraisal value and rental income
• Down payment and LTV ratio

DSCR loans fall into the non-QM loan category, alongside other investor-friendly programs like 1099 loans and P&L loans.

Fixed vs Adjustable DSCR Loan Rates

You can choose from 30-year fixed, ARM (adjustable-rate mortgage), or interest-only terms. Here’s the tradeoff:

• Fixed rate: Stability over 30 years but usually a higher rate
• ARM: Lower initial rate that adjusts after 5–7 years
• Interest-only: Maximize cash flow upfront, but payments increase later

Your choice depends on your investment strategy and risk tolerance. Our Loan Options page outlines the most popular programs and who they’re best for.

DSCR Loan Case Studies: What Real Clients Are Seeing

Here are a few recent examples from investors we’ve worked with:

• Fresno, CA – 4-unit rental: 30-yr fixed, 75% LTV, DSCR 1.35 → 7.49%
• Anaheim, CA – Airbnb property: ARM, DSCR 1.10 → 8.25%
• Santa Ana, CA – Portfolio refinance: Interest-only, DSCR 1.20 → 8.95%

These rates reflect mid-2025 conditions and may shift slightly. Each client worked closely with our team to choose the right structure for their goals.

How to Qualify for the Best DSCR Loan Rates

To secure the most competitive DSCR loan rate, consider the following strategies:

• Aim for a DSCR of 1.25 or higher
• Boost your credit score above 720
• Put down at least 25% if possible
• Choose a property with stable rental income
• Work with an experienced DSCR broker (like Key Real Estate Capital!)

We’ll package your application to highlight strengths and match you with the right lender.

DSCR Rate Trends in 2024–2025

DSCR loan rates rose in 2024 but have stabilized in 2025. With inflation tapering and Fed rate hikes slowing, we’re seeing more aggressive pricing from DSCR lenders.

Some offer closing cost credits or rate buydowns. Now may be a good time to lock in a competitive rate before investor demand spikes in Q3.

Use our Mortgage Calculator to estimate payments based on today’s averages.

Final Thoughts: Choose a Lender Who Knows DSCR Loans

DSCR loans are an incredible tool for building wealth through real estate—but rates can vary widely. By working with a broker who understands investor needs, you gain access to more lenders, smarter structuring, and better terms.

Learn more about us, explore our nationwide service areas, or contact us today to get started on your DSCR loan quote. We’re here to help you close quickly and confidently.