One Rental At A Time 8 Levers That Control Your DSCR Loan Rate
Mar 3, 2026
A deep dive into the eight factors that shape DSCR loan rates in rental real estate. Topics include how loan-to-value shifts affect pricing, the role of credit score buckets and rapid rescoring, and tradeoffs with prepayment penalties. They cover property type and occupancy impacts, cash-out vs no cash-out rate changes, and which loan sizes lenders favor.
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LTV Changes Hit Rates Harder Near Higher Leverage
- Loan-to-value materially shifts DSCR rates with bigger penalties at higher LTV tiers.
- A 5% LTV change around 75–80% costs ~0.375% rate; smaller moves at low LTVs cost ~0.125%.
Raise Your Credit A Few Points Before Applying
- Improve FICO before locking to lower DSCR rates, especially to cross 700 and 740 brackets.
- Moves like balance transfers or a rapid rescore can cost a few hundred dollars and save ~0.375% on rate.
Always Compare Prepayment Penalty Terms
- Ask every lender about prepayment penalties because longer prepay terms lower rates.
- A five-year prepay can be ~0.25% better than a three-year and ~0.75% better than no prepay.