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DSCR loan rates and costs
What drives pricing, what you will pay beyond the rate, and how to compare quotes.
DSCR loan rates depend on the scenario, so we do not publish one rate. Pricing is driven by credit score, loan-to-value, DSCR, loan amount, property type, occupancy, the prepayment penalty you choose and the lender. Because these are investor loans, pricing is generally higher than a conventional owner-occupied mortgage. Ask for a scenario quote, and compare the full cost, not only the rate.
This site does not show current rates. Rates change daily and depend on your file. Any numbers on this page are labeled examples to show how costs work.
What drives your DSCR loan rate
| Factor | General effect |
|---|---|
| Credit score | Higher scores generally earn better pricing and higher leverage |
| Loan-to-value | Lower LTV (bigger down payment) generally improves pricing |
| DSCR | Higher ratios generally improve pricing. Below 1.0 often adds cost |
| Loan amount | Very small and very large loans can price differently |
| Property type | Single-family generally prices best. Condos, 2 to 4 units and short-term rentals can add cost |
| Purchase or cash-out | Cash-out generally costs more than purchase or rate and term |
| Prepayment penalty | A longer penalty usually buys a lower rate, a shorter one a higher rate |
| Interest-only or fixed | Structure options change the rate and payment |
| Lender | Specialist lenders price the same file differently, which is why we compare |
Costs to expect beyond the rate
- Lender and origination fees, sometimes quoted as points
- Appraisal, which includes a market rent schedule on a DSCR file
- Title and attorney fees, since NC and SC closings use an attorney
- Prepaid items and escrows, such as insurance and taxes, if required
- Credit report and other third-party fees
- Entity costs if you form or update an LLC
The prepayment penalty is part of the price
Many DSCR loans carry a prepayment penalty, often a percentage of the balance that steps down over a few years, for example 5-4-3-2-1. Some programs let you buy the penalty down for a higher rate. If you plan to refinance or sell inside a few years, the penalty can cost more than a rate difference saves. Ask for the schedule in writing. Business-purpose loans are generally exempt from many consumer mortgage disclosure rules, so read the note and the rider carefully.
How to compare two quotes
- Same loan amount, same term, same lock period.
- Rate and total lender fees, or the cost in points.
- The prepayment penalty schedule and any buydown.
- Escrow requirements and reserve requirements.
- Monthly PITIA, and what DSCR that gives.
Get a real scenario quote
Send us the property, price, rent estimate, credit range and down payment. We will compare specialist lenders and show you the options. Asking is free and does not require a credit pull to start. Request a quote or call 704-343-8681.
Ready to run your numbers?
Free quote. No credit pull to start. A licensed 1st Advantage Mortgage team member follows up.
Frequently asked questions
What are current DSCR loan rates?
Rates depend on the scenario, so we do not publish a single number. DSCR pricing is driven by credit score, LTV, DSCR, loan amount, property type, occupancy, prepayment penalty choice and the lender. Because the loans are investor loans, pricing is generally higher than a conventional owner-occupied loan. Ask for a scenario quote and compare the full cost, not only the rate. Read our rates and costs guide.
Do DSCR loans have prepayment penalties?
Many do, and often you can choose between a lower rate with a penalty and a higher rate with a shorter penalty or none. A common structure steps down over several years, such as 5-4-3-2-1 percent. If you plan to sell or refinance soon, the penalty schedule matters as much as the rate. Always get the schedule in writing before you lock.
What does it cost to ask for a DSCR quote?
Nothing. Asking for a quote is free and does not require a credit pull to start. You will pay normal third-party costs, such as the appraisal and title or attorney fees, only if you move forward with a loan.
How long does a DSCR loan take to close?
Many DSCR loans close in roughly three to five weeks, depending on the appraisal, the title or attorney process, entity paperwork and how quickly documents come in. Purchases with a firm contract date need a timeline built backward from closing, so share your contract date early. We do not promise a closing date, but we plan around yours.
Is a quote a commitment to lend?
No. A quote or any content on this site is not a commitment to lend. All loans are subject to credit approval, a property appraisal and program eligibility, and rates, terms and availability can change without notice.
Free, no obligation
Get your DSCR loan quote
Tell us about the property. A licensed 1st Advantage Mortgage team member follows up with you. There is no fee to ask and no credit pull to start.
- We compare specialist wholesale lenders instead of fitting you to one lender's menu
- Qualify on the property's rent, with no tax returns, W-2s or pay stubs on any program
- North Carolina and South Carolina investors, including first-time investors and LLC buyers
- Talk to a person: call 704-343-8681
Prefer to apply directly? Start an application with 1st Advantage Mortgage.