Best DSCR Loan Rates in March 2026: Current Rates and Top Lenders

DSCR loan rates in March 2026 are running 1.5–2.5% above conventional investment property rates — typically landing between 7.50% and 9.25% depending on your credit score, down payment, and the property's debt service coverage ratio. That spread sounds large, but for investors who can't or won't use W-2 income to qualify, DSCR loans remain the most efficient path to rental property financing at scale.

Here's what rates look like right now, what's driving them, and how to position yourself for the best pricing.

Current DSCR Loan Rate Ranges — March 2026

Rates vary significantly based on loan characteristics. Here's a realistic snapshot of where pricing sits:

These ranges reflect 30-year fixed rates on single-family rentals and 2–4 unit properties. Short-term rental properties (Airbnb/VRBO) and 5+ unit properties typically carry an additional 0.25%–0.50% premium.

Top DSCR Lenders and Their Current Pricing

1. Visio Lending

Long considered the DSCR market's benchmark lender:

• 30-Year Fixed: 7.75%–8.50% (credit/LTV dependent)
• Interest-Only Option: Available (adds ~0.25%)
• Min DSCR: 1.00 (some programs at 0.75 DSCR with higher rate)
• Min Credit Score: 680
• Max LTV: 80% for purchases, 75% for cash-out refi
• Strengths: Consistent underwriting, fast closings (21–30 days), accepts LLCs

2. Lima One Capital

Strong for investors doing multiple transactions:

• 30-Year Fixed: 7.90%–8.75%
• Interest-Only Available: Yes
• Min DSCR: 1.00
• Min Credit Score: 660
• Max LTV: 80%
• Strengths: No seasoning on cash-out, portfolio pricing for repeat borrowers, accepts non-warrantable condos

3. Angel Oak Mortgage

Broader product set including near-miss DSCR scenarios:

• 30-Year Fixed: 7.85%–8.90%
• Min DSCR: 1.00 (no-ratio programs available)
• Min Credit Score: 620
• Max LTV: 80%
• Strengths: Bank statement and DSCR blend options, competitive pricing for 720+ borrowers

4. Kiavi (formerly LendingHome)

Primarily fix-and-flip but expanding into rental DSCR:

• 30-Year Fixed: 8.00%–9.00%
• Min DSCR: 1.00
• Min Credit Score: 680
• Max LTV: 75%
• Strengths: Tech-forward platform, fast pre-approval, strong for portfolio builders

5. Deephaven Mortgage

Competitive on high-balance and multi-unit DSCR:

• 30-Year Fixed: 7.75%–8.50%
• Min DSCR: 0.75 (no-ratio options)
• Min Credit Score: 660
• Max LTV: 80%
• Strengths: Strong on 2–4 units and 5–10 unit small multifamily, liberal on property types

Lender Rate Comparison Summary

Best pricing assumes 720+ credit, 70% LTV, and DSCR of 1.25+.

What's Driving DSCR Rates in March 2026

DSCR loan rates are priced off the 10-year Treasury plus a spread reflecting:

1. Non-QM risk premium: DSCR loans aren't eligible for Fannie/Freddie purchase, so lenders price in the cost of holding or securitizing in non-agency pools. This adds roughly 1.50%–2.00% over conforming rates.

2. Rental income volatility risk: Lenders bake in the possibility of vacancy, which is why higher DSCR ratios (1.25+) unlock meaningfully better pricing than a 1.00 DSCR.

3. Current macro environment: The 10-year Treasury has been hovering between 4.40%–4.70% through early 2026. Combine that with non-QM spreads of 2.75%–3.50%, and you get the rate ranges shown above.

4. Prepayment structure: Most DSCR loans come with 3–5 year step-down prepayment penalties (5/4/3/2/1 or 3/2/1). Loans with longer prepay periods price slightly better than those with shorter ones.

How Your DSCR Ratio Directly Affects Your Rate

The coverage ratio is the single most powerful lever for pricing:

• DSCR below 1.00: Some lenders will still fund (especially for high-equity properties), but rates jump 0.75%–1.25% above base
• DSCR 1.00–1.10: Standard pricing, minimal risk premium
• DSCR 1.10–1.25: Better pricing begins here; some lenders offer 0.125%–0.25% discounts
• DSCR 1.25+: Best available pricing tier; lenders view this as lower default risk
• DSCR 1.50+: Maximum pricing benefit; some lenders offer additional rate improvement or reduced fees

How lenders calculate DSCR: DSCR = Gross Monthly Rental Income ÷ Monthly PITIA (Principal + Interest + Taxes + Insurance + HOA)

If a property generates $3,000/month in rent and PITIA is $2,300, DSCR = 1.30 — a strong qualifying ratio.

Rate Reduction Strategies for March 2026

Buy Down Points

1 point = 1% of the loan amount, typically reducing rate by 0.25%. On a $300,000 DSCR loan at 8.50%, paying 2 points ($6,000) could reduce rate to 8.00%:

• Without buydown: $300,000 × 8.50% / 12 = ~$2,125/month interest
• With buydown: $300,000 × 8.00% / 12 = ~$2,000/month interest
• Monthly savings: ~$125
• Break-even: $6,000 ÷ $125 = 48 months

If you're keeping the property 4+ years, points pay off. For shorter holds with a DSCR loan flip exit, skip the buydown.

Larger Down Payment

Moving from 75% LTV to 65% LTV typically reduces rate by 0.25%–0.50%. On a $350,000 purchase, putting down 35% ($122,500) instead of 25% ($87,500) costs $35,000 more but may save $50–$100/month in interest.

Improve Credit Score Before Applying

Going from 680 to 720+ can reduce your rate by 0.50%–0.75% on DSCR loans. A 3-month push before applying — paying down revolving balances below 20% utilization and disputing any errors — is often worth the wait.

Choose the Right Lender for Your Profile

Not all lenders price all profiles competitively. A lender who's aggressive for 720+ borrowers may be expensive for 660–679. HonestCasa (honestcasa.com) matches investors with DSCR lenders based on their specific credit, property type, and DSCR profile — showing real rates without a credit pull.

DSCR Loan Rate vs. Conventional Investment Loan: The Trade-Off

For investors with strong W-2 income and fewer than 10 properties, conventional loans are cheaper. For investors building 10+ property portfolios, 1099/self-employed earners, or LLC investors, the DSCR rate premium is the cost of flexibility — and it's a rational trade.

Market Outlook: Will DSCR Rates Improve in 2026?

Rate forecasting is inherently uncertain, but here's what's shaping the trajectory:

• Federal Reserve stance: The Fed held rates steady at 4.25%–4.50% through Q1 2026. Most forecasts suggest 1–2 cuts by year-end, which would put downward pressure on the 10-year.
• Non-agency spreads: Currently elevated vs. historical norms. If credit markets normalize, DSCR spreads could compress 0.25%–0.50% even without Fed action.
• Investor demand: Strong demand for DSCR loans is keeping lender books full. Until origination volumes drop, there's less competitive pressure to reduce rates.

Conservative outlook: DSCR rates likely end 2026 in the 7.25%–8.50% range for well-qualified borrowers — meaningfully better than today's floors if macro conditions cooperate.

How to Get the Best DSCR Rate in March 2026

1. Target DSCR of 1.25+: Buy properties where rents clearly cover debt service with room to spare.
2. Put 25–30% down: Crosses into the 70–75% LTV pricing tier.
3. Get your credit above 720: Even moving from 690 to 720 can save 0.25%–0.50%.
4. Shop 3–5 lenders: Rates vary by 0.50%–0.75% across the same profile at different lenders.
5. Consider 5/1 ARM if you plan to refinance or sell within 5 years: ARM DSCR products currently price 0.50%–0.75% below 30-year fixed.

Start your DSCR rate comparison today at honestcasa.com, where you can see current rates from multiple non-QM lenders without impacting your credit score.