DSCR Lenders with the Lowest Rates in 2026

DSCR loan rates typically run 0.5-2.5 percentage points higher than conventional mortgages, but that spread varies dramatically between lenders. The difference between the best and worst rate for the same borrower can easily exceed 1%, translating to hundreds per month and tens of thousands over the loan's life.

This guide identifies which DSCR lenders consistently offer the lowest rates, what factors influence your specific rate, and exactly how to position yourself for the best pricing available.

Current DSCR Rate Landscape (February 2026)

As of mid-February 2026, the DSCR loan market shows these rate ranges:

• Exceptional borrowers (740+ credit, 1.3+ DSCR, 25%+ down): 6.25-7.00%
• Strong borrowers (680+ credit, 1.1+ DSCR, 20% down): 6.75-7.75%
• Good borrowers (660+ credit, 1.0+ DSCR, 20% down): 7.25-8.25%
• Fair borrowers (640+ credit, 0.75+ DSCR, 25% down): 8.00-9.00%

These rates assume 30-year fixed mortgages on single-family rentals. ARMs (adjustable-rate mortgages) typically price 0.50-0.75% lower initially, while multifamily properties may see 0.25-0.50% premium.

Lowest-Rate DSCR Lenders

1. CoreVest: 6.25-7.50%

CoreVest consistently offers the most competitive rates for well-qualified borrowers. Their institutional backing and strong secondary market relationships allow them to price aggressively.

How to qualify for their best rates:

• Credit score 720 or higher
• DSCR of 1.25 or higher
• At least 25% down payment
• 12+ months reserves
• Property in strong rental market

CoreVest's rate advantage grows with borrower strength. A borrower with 740 credit, 1.4 DSCR, and 30% down might see rates 0.50-0.75% lower than competitors.

Rate lock options: 30, 45, or 60 days. Longer locks cost approximately 0.125% per additional 15 days.

ARM products: 5/1 and 7/1 ARMs priced 0.625-0.75% below their fixed rates, making them attractive for investors planning shorter hold periods.

2. Lima One Capital: 6.50-8.00%

Lima One offers exceptional pricing for portfolio investors and borrowers with strong financials. Their rates become increasingly competitive as you finance more properties with them.

Portfolio pricing structure:

• 1-4 properties: Standard rates
• 5-9 properties: 0.125% rate reduction
• 10-19 properties: 0.25% rate reduction
• 20+ properties: 0.375% rate reduction plus relationship pricing

This means a portfolio investor with 15 properties might access rates at 6.50-7.25%, significantly below single-property investors.

How to qualify for best rates:

• Credit score 680 or higher
• DSCR of 1.15 or higher
• At least 20% down
• Growing portfolio (shows commitment)

Special programs: Construction-to-permanent loans with competitive takeout rates, often 0.25% below standard DSCR pricing once construction completes.

3. Visio Lending: 6.75-8.25%

Visio provides competitive rates with faster closings than most low-rate competitors. Their efficiency allows them to maintain strong pricing without sacrificing speed.

Rate tiers:

• Premium tier (700+ credit, 1.25+ DSCR): 6.75-7.25%
• Standard tier (680+ credit, 1.0+ DSCR): 7.25-7.75%
• Value tier (660+ credit, 0.75+ DSCR): 7.75-8.25%

Rate improvement strategies:

• Increase down payment to 25-30%: Saves 0.125-0.25%
• Provide 12+ months reserves: Saves 0.125%
• Purchase in A/B rental markets: Saves 0.125%

Visio's online platform allows you to see real-time rate estimates based on your scenario, providing transparency most lenders don't offer.

4. Anchor Loans: 6.75-8.50%

Anchor competes aggressively in California and high-cost markets where other lenders add premiums. For West Coast investors, they often provide the best effective rates.

High-cost market advantage: Most DSCR lenders add 0.25-0.50% for properties above $1 million. Anchor doesn't, making them extremely competitive in expensive areas.

Rate buydown options: Anchor offers permanent buydowns at reasonable costs—typically 0.75-1.0 points per 0.25% rate reduction. For long-hold properties, this creates significant savings.

Best rates require:

• Credit score 680+
• DSCR 1.2+
• Property in their core markets (CA, WA, OR, NV, AZ)
• 20-25% down payment

5. Kiavi: 7.00-8.50%

Kiavi's rates sit in the middle of the pack, but their relationship pricing and bridge-to-DSCR conversions can create effective rate advantages.

Relationship pricing: Borrowers who've closed 3+ loans with Kiavi receive 0.25% rate discounts. Close 5+ loans and discounts reach 0.375%.

Bridge-to-DSCR advantage: If you financed a property's purchase with Kiavi's bridge product, converting to their DSCR loan often comes with 0.25-0.50% rate discount plus reduced or waived fees.

How to access best rates:

• Credit score 700+
• DSCR 1.2+
• Existing Kiavi relationship
• 20-25% equity

What Actually Determines Your DSCR Rate?

Understanding rate drivers helps you optimize your application for the lowest possible pricing.

Credit Score Impact

DSCR lenders tier rates based on credit bands:

Tier 1 (740+): Best rates available Tier 2 (700-739): Add 0.125-0.25% Tier 3 (680-699): Add 0.25-0.50% Tier 4 (660-679): Add 0.50-0.75% Tier 5 (640-659): Add 0.75-1.25%

Unlike conventional mortgages where every 20-point increment matters, DSCR lenders use broader bands. A 685 credit score receives the same rate as 699 at most lenders.

Optimization strategy: If you're near a threshold (698, for example), spending 30-60 days improving credit to cross into the next tier can save thousands. If you're mid-tier (690), the improvement effort may not justify the rate benefit.

DSCR Ratio Impact

The property's debt service coverage ratio heavily influences pricing:

1.25+ DSCR: Best rates, full 80% LTV available 1.15-1.24 DSCR: Add 0.125-0.25% 1.05-1.14 DSCR: Add 0.25-0.50% 0.95-1.04 DSCR: Add 0.50-0.75%, may require 25% down 0.75-0.94 DSCR: Add 0.75-1.50%, typically requires 25-30% down Below 0.75: Limited DSCR availability, expect significant rate premiums

Optimization strategy: If you're borderline on DSCR, consider:

• Slightly higher down payment (improves DSCR by reducing loan amount)
• Finding comparable properties with higher rents
• Delaying purchase until you can increase the down payment

A $400,000 property renting for $2,800/month with $2,400 PITI payment shows 1.17 DSCR. Increasing to 25% down (from 20%) drops PITI to approximately $2,250, pushing DSCR to 1.24—crossing a rate threshold.

Loan-to-Value Impact

Most DSCR lenders price at these LTV breakpoints:

75% LTV or less: Best rates 75.01-80% LTV: Add 0.125-0.25% 80.01-85% LTV: Add 0.50-1.00% (rarely available)

The marginal rate cost of moving from 75% to 80% LTV rarely justifies the additional leverage. Running the numbers:

$400,000 property at 7.00% rate, 75% LTV:

• Loan: $300,000
• Down payment: $100,000
• Monthly P&I: $1,996
• Total interest (year 1): $20,889

$400,000 property at 7.25% rate, 80% LTV:

• Loan: $320,000
• Down payment: $80,000
• Monthly P&I: $2,183
• Total interest (year 1): $23,104

You save $20,000 in down payment but pay $187/month more ($2,244/year). The $20,000 in additional leverage costs you $2,244 annually—11.2% annual cost. Unless you can deploy that $20,000 at returns significantly above 11.2%, take the 75% LTV.

Property Type and Location

Lenders tier rates based on property characteristics:

Single-family homes in A/B markets: Standard rates Condos (warrantable): Add 0.125-0.25% Condos (non-warrantable): Add 0.50-0.75% 2-4 unit multifamily: Add 0.125-0.50% Rural locations: Add 0.25-0.50% C/D markets: Add 0.25-0.75%

"A/B markets" generally means metro areas with:

• Population above 100,000
• Diversified employment
• Median home prices within 20% of state median
• Stable or growing population

CoreVest and Lima One offer the most favorable property/location pricing, while Truss Financial shows the least variance (they don't heavily penalize challenging property types).

Reserve Requirements

Reserves represent months of PITI payments you hold in liquid accounts. More reserves signal lower risk:

12+ months reserves: Best rates 9-11 months: Add 0.125% 6-8 months: Add 0.25% Below 6 months: Add 0.50% or decline

Most lenders require reserves calculated across your entire portfolio, not just the property being financed. If you own 5 rental properties with average PITI of $2,000, you need $10,000 in reserves per month—so 12 months requires $120,000 in liquid assets.

Optimization strategy: Reserves don't need to sit in checking accounts. Most lenders accept:

• Money market accounts
• Stocks and bonds (70% of value)
• Retirement accounts (60-70% of value, varies by lender)
• Business accounts (if you're the majority owner)

Rate Lock Strategies

DSCR lenders offer rate locks from 30-90 days, with longer locks costing more:

30-day lock: Standard pricing 45-day lock: Add 0.125% 60-day lock: Add 0.25% 90-day lock: Add 0.375-0.50%

When to choose longer locks:

• Purchasing properties that need appraisals on unique features
• Buying in rural areas where appraisers are scarce
• Dealing with complex title issues
• Want rate protection in rising-rate environments

When to choose shorter locks:

• Refinancing (you control timing)
• Purchasing turnkey properties in standard markets
• Rates are stable or declining
• You have tight deadlines (hard money coming due, etc.)

Some lenders offer "float-down" provisions—if rates drop during your lock, you get the lower rate for a fee (typically 0.125-0.25%). This costs upfront but provides downside protection.

ARM vs. Fixed Rate Considerations

Adjustable-rate mortgages price 0.50-0.75% below fixed rates initially, then adjust after the fixed period (typically 5 or 7 years).

Current ARM pricing:

• 5/1 ARM: 5.75-7.00%
• 7/1 ARM: 6.00-7.25%
• 30-year fixed: 6.25-8.00%

When ARMs make sense:

• You plan to sell or refinance within the fixed period
• You expect rates to decline (allowing favorable refinancing)
• The property needs value-add work before refinancing to better terms
• You're in a high-rate environment and want current payment relief

When fixed rates make sense:

• You're holding long-term (10+ years)
• Cash flow is tight and you can't risk payment increases
• Current rates are historically attractive
• You value payment certainty over potential savings

Run the break-even: A 5/1 ARM at 6.50% vs. fixed at 7.00% on a $300,000 loan saves $91/month ($5,460 over 5 years). If you're certain you'll refinance or sell within 5 years, the ARM wins. If there's any chance you'll keep the loan past year 5, the uncertainty may not justify the savings.

How to Get the Absolute Lowest Rate

Follow this optimization checklist:

1. Polish your credit profile (60-90 days before applying):

• Pay down credit card balances to below 10% utilization
• Don't open new accounts or make large purchases
• Dispute any errors on credit reports
• Make all payments on time (even non-credit items)

2. Optimize your DSCR:

• Provide lease agreements showing actual rents (not estimated)
• Consider slightly larger down payment if borderline on DSCR
• Choose properties in markets with favorable rent ratios

3. Build reserves:

• Consolidate liquid assets into clear accounts
• Convert illiquid assets to stocks/bonds (70% countable vs. 0%)
• Document retirement accounts (IRA, 401k statements)

4. Target the right lenders:

• CoreVest if you have pristine credit and strong DSCR
• Lima One if you have multiple properties
• Visio if you need speed with competitive pricing
• Anchor if you're in California/high-cost markets

5. Get multiple quotes:

• Contact 3-4 lenders simultaneously
• Provide identical scenarios to each
• Ask for full fee breakdown, not just rate
• Negotiate using competitive quotes

6. Time your application:

• Apply Tuesday-Thursday (loan officers have full attention)
• Avoid month-end (processors are slammed)
• Lock rates in the morning (often best pricing of the day)

7. Consider rate buydowns:

• If holding 7+ years, permanent buydowns often pencil
• Calculate break-even (months to recover buydown cost through lower payment)
• Typical pricing: 0.75-1.0 point per 0.25% rate reduction

The Total Cost Perspective

The lowest rate doesn't always mean the lowest cost. Factor in:

Origination fees: Range from 0-2% of loan amount. A lender offering 6.75% with 2% origination may cost more than 7.00% with 0.5% origination.

Prepayment penalties: Some low-rate products include 3-5 year prepayment penalties, often structured as declining penalties (3%/2%/1% in years 1-3). If you might refinance or sell early, these matter enormously.

Underwriting speed: A lender offering 6.50% that takes 60 days to close might cost you a deal. Missing a property because of slow underwriting can't be quantified on a rate sheet.

Calculate total cost over your expected hold period:

Example: $300,000 loan, 5-year hold

Lender A: 6.75%, 1% origination, no prepayment penalty

• Origination: $3,000
• Interest (5 years): $98,250
• Total cost: $101,250

Lender B: 6.50%, 2% origination, 3-year prepayment penalty (3%/2%/1%)

• Origination: $6,000
• Interest (5 years): $94,875
• Prepayment penalty (if refinancing in year 3): $0 (outside penalty period)
• Total cost: $100,875

Lender B saves $375 over 5 years, but if you refinance in year 2, that penalty costs $6,000—wiping out rate savings entirely.

Bottom Line

The absolute lowest DSCR rates go to borrowers with:

• 720+ credit scores
• 1.25+ DSCR properties
• 25%+ down payments
• 12+ months reserves
• Single-family homes in strong markets

If you check these boxes, focus your search on CoreVest, Lima One, and Visio Lending. If you're outside these parameters, optimize what you can control (reserves, down payment, property selection) and target lenders that don't heavily penalize your specific situation.

Remember: a 0.25% rate difference on a $300,000 loan costs $47/month. Meaningful, but not as meaningful as buying the right property in the first place. Don't chase the absolute lowest rate at the expense of deal quality or working with a lender who actually closes on time.