Every investor wants the rate first. On a DSCR loan, the rate you get depends on your file as much as the market, and several of those levers are in your hands.
In short: LendingStreet DSCR loan rates start from 6.125% for well-qualified borrowers, and rates change with the market. Your actual rate depends on credit score, loan-to-value, the property’s DSCR, loan size, loan purpose and the prepayment structure you choose. The best way to see your number is a quote on your specific property, because two investors applying the same day can be priced very differently.
Our starting rate from 6.125% applies to well-qualified borrowers with strong credit, moderate leverage and solid rental coverage. Rates move with the bond market, so any published number can change week to week.
Most files carry one or more adjustments from that starting point. Each adjustment is small, but several together can make a real difference to your payment.
These are the main inputs. The exact size of each adjustment varies by program and changes over time.
| Factor | Usually helps | Usually costs more |
|---|---|---|
| Credit score | Higher scores | Scores near the 620 minimum |
| Loan-to-value | Lower leverage | Maximum leverage |
| DSCR ratio | Well above 1.0x | At or below 1.0x |
| Loan purpose | Purchase or rate-and-term | Cash-out |
| Prepayment penalty | Longer penalty | No or short penalty |
| Property type | Single-family, long-term lease | Condo, short-term rental, rural |
This example is illustrative and uses sample rates, not quotes. The loan is $400,000 on 30-year amortization. Rent is $3,200 a month, with $600 a month in taxes and insurance.
At 6.5%, principal and interest is about $2,528, so the total payment is $3,128 and DSCR is about 1.02x. At 7.25%, the payment rises to about $3,329 and DSCR falls to about 0.96x. The same property drops below 1.0x.
| Sample rate | Monthly payment (PITI) | DSCR |
|---|---|---|
| 6.50% | $3,128 | ≈1.02x |
| 7.25% | $3,329 | ≈0.96x |
Rate and DSCR feed each other. A higher rate lowers your ratio. A lower ratio can push the file into a pricing tier with a higher rate.
Standard programs use a 1.0x minimum, and specialty programs go down to 0.75x at different pricing. Knowing where your property lands before you make an offer keeps surprises out of closing.
A few practical moves often improve pricing. Not every option makes sense for every deal.
One point equals 1% of the loan amount. On a $400,000 loan, one point is $4,000 at closing. Paying points can lower your rate, and the trade-off is how long it takes monthly savings to repay that cost.
If you plan to refinance or sell within a few years, a lower upfront cost may beat a lower rate. Our refinance break-even calculator can help you test the math.
A rate quote is only as good as the details behind it. Send the property address, expected rent, purchase price or value, your credit range and your hold plan.
Our financing team typically brings back 2–3 options, showing rate, points, prepayment terms and payment side by side. You see the trade-offs before you commit to anything.
Our DSCR rates start from 6.125% for well-qualified borrowers, and rates change with the market. Your rate depends on credit, leverage, DSCR, loan purpose and prepayment terms. A quote on your specific property is the only reliable number.
DSCR loans qualify on the property’s rent instead of your personal income and tax returns. They also allow LLC ownership and more properties than conventional limits. That flexibility is priced into the rate.
Usually, yes. Cash-out loans are priced slightly higher than purchases or rate-and-term refinances. The size of the difference varies by program and leverage.
In most cases, yes. A longer prepayment penalty generally lowers the rate, while shorter or no penalty costs more. Choose based on how long you expect to hold the property.
Yes, 620 is our minimum on DSCR programs. Expect pricing above the starting rate at that score. Lower leverage and stronger DSCR can help offset it.
Yes, rates can typically be locked once the file is far enough along, often after the appraisal is ordered. Lock periods and costs vary by program. Ask your loan officer how long your lock needs to be for your closing date.
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