DSCR loan rates are typcially priced off the 5-year Treasury with a spread based on the property, rents, your borrower profile, and the lender. On this page you'll find current DSCR loan rate estimates, and a free DSCR loan rate calculator that is updated with live rates daily.
I have purchased 120+ rental properties in the U.S. since 2016, and DSCR loans are the cornerstone of my own financing. Rates run a little higher than a conventional mortgage, but the easy qualification is what has let me scale.
This guide covers what DSCR loans cost right now, the benchmark they follow, what sets your individual rate, and the levers to get the best one.
Key takeaways
Use our simple DSCR interest rate estimator tool below to get an instant DSCR loan rate estimate based on your borrower profile and deal.
Estimated rates are calculated based on today's 5-year U.S. Treasury (updated daily) plus a spread for your borrower profile, loan-to-value, and the property's cash flow (DSCR). Estimates only, not a rate quote.
| Loan type | Typical range | Notes |
|---|---|---|
| 30-year DSCR fixed | ~6.75% to 7.00% | The most common structure; the benchmark for comparison. |
| 15-year DSCR fixed | ~6.65% to 6.90% | Usually prices slightly below the 30-year for comparable files. |
| DSCR cash-out refinance | ~7.00% to 8.00% | Prices roughly 0.25% to 0.50% above a standard fixed DSCR. |
| ARM (5/6, 7/6, 10/6) | ~6.70% to 7.60% | Starts below fixed, then adjusts on an index plus margin with caps. |
| Interest-only (purchase) | ~6.90% to 7.90% | A modest premium over amortizing, but a lower qualifying payment. |
Ranges vary by DSCR and LTV, property type including short-term rentals, state, credit, and lender overlays. Non-resident and foreign national DSCR loans are available from select lenders, usually at a small premium.
DSCR lenders offer three structures, and the one you choose affects both your rate and your cash flow. A lower initial rate is not always the best choice; match the structure to how long you plan to hold.
| Loan type | Typical term | Typical range | Best for |
|---|---|---|---|
| Fixed rate | 15 or 30 years | 6.75% to 8% | Long-term investors who want stability |
| Adjustable rate (ARM) | 30 years, fixed 5 to 10 | 6.25% to 7.5% | Selling or refinancing within the fixed period |
| Interest-only | 40 years, 10 interest-only | 7% to 8.25% | Maximizing early cash flow or qualifying a thin deal |
For a deeper comparison see DSCR ARM vs fixed, and weigh a full-doc option in DSCR vs conventional loans. You can also refinance an existing rental; I do it regularly, as covered in my DSCR cash-out refinance guide.
It is a common misconception that your rate comes purely from your DSCR. In practice it is a mix of the benchmark, the property, and your borrower profile.
Here is a real example, an off-market five-bedroom rental I helped a client buy in Kansas City, Missouri in July 2025. It was turnkey with a tenant paying $2,150 a month, financed with a DSCR loan at 7.25%.
With rent of $2,150 against PITI of $1,429.42, the property came in at a DSCR of 1.50 and qualified easily.
The rate was a touch higher because the buyer was a non-resident without U.S. credit, but the property still delivered about $720 a month in cash flow before reserves.
For a more detailed breakdown of a DSCR funded deal, see my Cleveland duplex case study, or browse some of our client case studies.
A few things move your rate before you ever apply:
The estimator above gives you a quick rate from your borrower profile. For a more precise rate on a specific property, plus DSCR, payment, closing costs, and reserves, use our free DSCR loan calculator.
I hope you've found this post and my DSCR loan rate calculator useful. If you'd like to speak to an expert about funding your next U.S. rental property with a DSCR loan, you can book a call with me or my team.
Everything you'll ever need to buy and manage U.S. rental property from overseas safely and with confidence.
DSCR loan rates typically run from about 6.75% to 9%, depending on your credit, the property type, the loan structure, and the lender. As a rule of thumb they sit roughly 0.5% to 2% above conventional mortgage rates.
Most DSCR lenders require at least 20% to 25% down, and non-residents are usually asked for 25% to 30%.
A DSCR of 1.25 or higher is generally considered strong and earns the best pricing, though many lenders will still lend at 1.0.
The main downsides are higher interest rates and larger down payments than a conventional mortgage, plus a smaller pool of specialist lenders.
Usually not. If the property's rental income covers the loan payment, you can qualify, even without U.S. income or U.S. credit.
DSCR rates are priced off the 5-year U.S. Treasury yield plus a lender spread, so they move as that benchmark moves. Conventional mortgages track the longer 10-year Treasury instead, because homeowners tend to hold longer than investors.
Yes. Most DSCR loans are made to an LLC, which many investors use for asset protection and simpler ownership.
Traditional banks usually do not. DSCR loans are typically offered by private and Non-QM lenders and by brokers who specialize in investor financing.
Yes, but most DSCR loans carry a prepayment penalty for the first few years, so check the terms before you plan an early payoff or refinance.
A 30-year fixed DSCR loan typically prices between about 6.75% and 8.5%, with your exact rate depending on credit, loan-to-value, the DSCR, and your residency.
David is co-founder of Cashflow Rentals and a British investor who has personally purchased more than 120 U.S. rental properties as a foreign national since 2016. He helps overseas investors build U.S. rental portfolios remotely, from his base in Brazil.
