DSCR Investor Loans

Key Factors That Impact Your Rate

Loan-to-Value (LTV)

• Lower LTV = Lower Rate

• 60–70% LTV → Best Pricing

• 75–80% LTV → Pricing Adjustments Apply

DSCR Ratio

• Higher cash flow improves pricing

• 1.25+ DSCR → Strongest Pricing

• 1.10–1.24 → Premium Pricing

• 1.00–1.09 → Standard Pricing

Credit Score

• 720+ FICO → Best Execution

• 680–719 → Moderate Pricing Adjustments

• 640–679 → Higher Rates & LTV Restrictions

Cash Reserves

• More reserves = Stronger Pricing

• 6–12 months PITIA Improves Rate Options

• 3 Month Minimum Reserves

Prepayment Penalty Option

• No Prepay Highest Rate

• 1-Year Prepay Slight Rate Reduction

• 3-Year Prepay Moderate Rate Reduction

• 5-Year Prepay Best Rate Pricing

*Most DSCR loans use step-down or declining prepay structures.

Origination Costs (Points & Fees)

Borrowers Can Buy Down The Rate or Reduce Upfront Costs.

Origination Structure Pricing Impact:

• 0 Points: Lowest Cost Option

• 1 Point: Typical Interest Rate Reduction of .25%

• 2 Points: Typical Interest Rate Reduction of .50%

Why Investors Choose DSCR Loans

• No personal income verification

• Approval based on property cash flow

• Scalable for portfolio growth

• Flexible prepay and pricing structures