DSCR rates get all the attention. Investors hunt for the lowest number they can find. But here’s what many miss. That advertised rate rarely tells the full story.
The actual cost of a DSCR loan depends on multiple factors. Points. Origination fees. Prepayment penalties. Required reserves. Loan-to-value limits. These pieces add up fast.
A lower advertised rate may still result in higher overall borrowing costs once points, fees, and other loan terms are considered.
This guide compares six DSCR lenders serving real estate investors in 2026. Their rate structures and loan terms vary, giving investors several factors to compare beyond the advertised interest rate.
How We Selected These Lenders
Choosing the right DSCR lender for rate comparison requires looking beyond the advertised number. We evaluated each lender across several criteria.
- Rate transparency. Some lenders publish detailed rate sheets. Others require a phone call. This matters when comparing DSCR loan rates.
- Fee structures. Origination costs vary widely. Some charge points. Others add processing fees. A few include everything in one number.
- Prepayment terms. The penalty for paying off a loan early can eat into savings from a lower rate. We reviewed each lender’s prepayment provisions.
- Borrower qualifications. Credit scores, DSCR requirements, and LTV limits all affect the final rate. We examined each lender’s qualification standards.
The lenders featured here represent different approaches to DSCR rate structures. Some prioritize low advertised rates. Others emphasize transparency and full cost disclosure.
1. Newfi Lending
Rental-property investors shopping for DSCR rates find something useful at Newfi Lending. The company provides DSCR financing with transparent rate structures. Their DSCR Rate Table allows borrowers to review current rate scenarios across different loan structures. Borrowers can view current rate scenarios across different loan structures without talking to a loan officer first.
Newfi’s enhanced DSCR Calculator launched in April 2026 with new features. Investors can evaluate purchases, refinances, and cash-out refinances using real numbers. The tool calculates the DSCR ratio, cap rate, and monthly and annual cash flow. Users can save scenarios for future review.
Newfi’s rates factor in the full loan picture. Points, origination costs, and prepayment provisions all get considered. Their Non-QM experience supports financing scenarios that may fall outside traditional mortgage guidelines.
What sets their rates apart:
- Live DSCR Rate Table shows current scenarios without phone calls
- Minimum DSCR as low as 0.75 for qualified borrowersÂ
- DSCR Calculator handles purchases, refinances, and cash-outs
- Full cost picture includes points, origination, and prepayment terms
- Non-QM expertise supports flexible financing structures
Rate details to know: Newfi’s minimum credit score is 640. Loan amounts range from $150,000 to $3 million. Lending availability varies by state.
2. Kiavi
Kiavi builds DSCR loan terms around property cash flow, not just borrower qualifications. Their rates start at 5.875% as of summer 2026.
Kiavi uses 110% of market rent in their DSCR calculation. This approach affects how rental income is incorporated into the DSCR calculation. The company also offers no hard credit pulls for rate quotes and no minimum liquidity requirements.
Their rate structures include 5/1 and 7/1 ARMs with fully amortizing and interest-only options. Thirty-year fixed rates are also available. No prepayment penalty applies after year 3.
Kiavi accepts DSCRs as low as 0.8x with compensating factors. This may provide additional qualification flexibility for properties with lower DSCR levels.
What sets their rates apart:
- Starting rates at 5.875% as of summer 2026
- Uses 110% of market rent in DSCR calculation
- Multiple rate structures, including fixed and ARM options
- No prepayment penalty after year 3
- Accepts DSCRs down to 0.8x
Rate details to know: Kiavi’s maximum LTV is 80%. No hard credit pulls for rate quotes. No minimum liquidity requirement.
3. Visio Lending
Visio Lending specializes exclusively in DSCR loans since 2012. Borrowers with 740+ credit and 1.2+ DSCR access the best pricing.
The company’s origination fees run 0.50-1.50 points. Visio also offers rate discounts for experienced investors. Those with 10+ properties get an additional 0.125% off.
Visio accepts short-term rental income for DSCR calculations. They use full rental income without a vacancy factor deduction.
The company provides detailed rate sheets publicly. The company provides detailed rate sheets for borrowers reviewing available loan terms.
What sets their rates apart:
- Origination fees at 0.50-1.50 points
- Experience discount for investors with 10+ properties
- Accepts short-term rental income
- Transparent public rate sheets
Rate details to know: Visio requires prior rental property experience. No first-time investors. Minimum DSCR of 1.0 with no exceptions. Standard prepayment penalty runs 5% in year 1, stepping down over 5 years. No lending in Alaska or Hawaii.
4. Lima One Capital
Lima One Capital offers DSCR financing with pricing that varies based on borrower and property characteristics. Those with 720+ credit and 1.2+ DSCR access rates in the low 7% range. The company’s rate sheets are detailed and upfront about fees.
Lima One provides a choice of prepayment penalty options. Borrowers can select no prepayment penalty or various step-down structures. Available prepayment structures give investors options based on their expected hold period.
The company accepts DSCRs as low as 0.90 with compensating factors. Their minimum credit score sits at 660 for the best LTVs. Loan amounts range from $75,000 to $2.5 million.
Lima One’s rental structures include 30-year fixed, 7/1 ARM, and 5/1 ARM options. Interest-only periods are available for the first 5 years on 30-year loans.
What sets their rates apart:
- Pricing varies based on credit and DSCR
- Choice of prepayment penalty options
- Accepts DSCRs down to 0.90
- Multiple rate structures available
- Detailed, transparent rate sheets
Rate details to know: Lima One requires 660 minimum credit score. Maximum LTV is 80% for purchases and 75% for refinances. Not licensed in Alaska, North Dakota, South Dakota, or Vermont. Condos and short-term rentals may carry rate premiums.
5. Angel Oak
Angel Oak serves investors who may not fit traditional guidelines. Their Non-QM lending experience allows for flexible qualification. Pricing varies based on the borrower, property, DSCR, and loan program.
The company uses market rent or lease income to calculate DSCR at origination. Their underwriting considers the property’s income potential alongside borrower qualifications.
What sets their rates apart:
- Non-QM lending for investors outside traditional guidelines
- Uses market rent or lease income for DSCR calculation
- Experienced in securitizing DSCR loans
- Flexible qualification approach
6. A&D Mortgage
A&D Mortgage offers DSCR financing with pricing that varies based on credit score, LTV, DSCR, property type, and specific loan program.
The company’s DSCR products include 30-year fixed and adjustable-rate options. Interest-only periods are available on certain products. Maximum LTV reaches 80-85%, competitive in the wholesale channel.
A&D Mortgage accepts various entity structures. Borrowers can close DSCR loans under LLCs and other holding entities. Their minimum credit score runs 660-680 depending on the specific product. Minimum DSCR sits at 1.0 for standard programs, with some flexibility for compensating factors.
What sets their rates apart:
- Rates from 6.5% to 8%
- Up to 85% LTV on DSCR products
- Accepts LLC and entity structures
- Multiple rate structure options
Rate details to know: A&D Mortgage requires a minimum credit score of 660-680. Minimum DSCR of 1.0. Down payment ranges from 15-25% depending on LTV and product. Works primarily through the wholesale channel.
How DSCR Rates Are Determined
DSCR rates aren’t pulled from thin air. Several factors influence what a lender offers.
- Credit scores. Credit scores: Credit profile can affect available pricing, with stronger credit generally supporting more favorable terms.
- DSCR. The property’s cash flow matters. DSCR: Stronger property cash flow may support more favorable pricing, depending on the lender and program.
- LTV. LTV: Loan-to-value can influence pricing, with lower leverage potentially supporting more favorable terms.
- Property type. Property type: Pricing may differ between single-family rentals, condos, short-term rentals, and multifamily properties.
- Loan size. Loan size: Available pricing and terms can vary across different loan amounts.
- Prepayment terms. Loans with prepayment penalties often have lower rates. The trade-off is less flexibility.
- Rate type. Fixed rates cost more than ARMs. The certainty comes at a price. Investors should compare both.
- Points. Paying points upfront lowers the rate. This makes sense for long-term holds. Not so much for short-term.
Why the Lowest Rate Isn’t Always the Best Deal
The cheapest advertised rate can be deceptive. Here’s why.
- Points and fees. A 6.5% rate with 2 points costs more upfront than a 6.75% rate with no points. The effective rate over the loan term might be higher.
- Prepayment penalties. Some loans include prepayment penalties that can increase the cost of selling or refinancing early. Investors should review the exact penalty structure before closing.
- Reserve requirements. Required reserves can affect how much capital remains available for other investments, so they should be included in the overall cost comparison.
- Closing timelines. Closing timelines: Processing and closing times vary by lender. Investors working with time-sensitive transactions should compare timelines alongside pricing.
- Service quality. Service quality: Communication and loan processing can also affect the borrower experience, particularly when a transaction has a strict closing deadline.
- Rate locks. Some lenders offer 30-day locks. Others provide 60-day locks. Longer locks cost more but reduce risk. Short locks can backfire if closing gets delayed.
- Re-lock options. Market changes happen. Some lenders offer float-down options if rates improve. Others don’t. This flexibility has value.
- Required repairs. Some lenders demand repairs before closing. Others are more flexible. The cost of repairs should factor into the rate comparison.
Bottom Line
Shopping for DSCR rates means looking at the whole picture. The lowest number rarely tells the whole story.
The six lenders above offer different approaches to DSCR pricing, qualification requirements, rate structures, prepayment terms, and investor financing. Comparing these details can provide a clearer picture of the total borrowing cost than the advertised rate alone.
The appropriate financing option depends on the investor’s specific scenario, including credit profile, property type, expected hold period, available reserves, and loan structure.
Compare the full cost of financing rather than the interest rate alone. Points, fees, prepayment terms, and other loan conditions can all affect the total cost over the expected holding period.
