DSCR Loan Rates in 2026: What to Expect
DSCR (Debt Service Coverage Ratio) loans have become the go-to financing option for real estate investors. Here's our analysis of where rates are headed.
Current Market Snapshot
As of January 2026, DSCR rates from our network of 143 verified lenders are averaging:
| Metric | Rate |
|---|---|
| Lowest | 6.38% (Navi) |
| Average | 7.25% |
| Highest | 9.50% |
Factors Affecting 2026 Rates
Fed Policy
The Federal Reserve's stance on interest rates remains the primary driver. Current market expectations:
- Q1 2026: Hold steady
- Q2-Q3 2026: Potential 25bp cut
- Q4 2026: Data dependent
Lender Competition
With 143+ DSCR lenders in our network competing for deals, spreads remain competitive. More lenders entering the space means better rates for borrowers.
Risk Premiums
- Strong rental markets = lower risk premiums
- High vacancy markets = higher premiums
- LTV under 70% = best rates
What the Experts Say
Industry Analysis
National Real Estate Investor: "Private lenders continue to gain market share from traditional banks, driving innovation and competition in the DSCR space."
Scotsman Guide: "DSCR loan volume expected to grow 15-20% in 2026 as more investors discover the product."
From the Community
"Locked in 6.75% DSCR last week. A year ago that was 8%+. Competition is real." — Investor on BiggerPockets
"The key is shopping multiple lenders. Rates can vary 100+ basis points for the same deal." — Real estate investing forum
Our Rate Predictions
| Quarter | Forecast |
|---|---|
| Q1 2026 | 7.0-7.5% average |
| Q2 2026 | 6.75-7.25% |
| Q3 2026 | 6.5-7.0% |
| Q4 2026 | 6.25-6.75% |
Forecasts based on current Fed projections and lender sentiment. Subject to change.
How to Get the Best Rates
1. Shop Multiple Lenders
Our Private Lender Exchange lets you get 10 rates guaranteed from 143+ DSCR lenders.
2. Optimize Your DSCR
Higher ratios = lower rates. Aim for 1.25+ DSCR for best pricing.
3. Keep LTV Under 75%
The sweet spot is 70-75% LTV. Under 70% unlocks the best rates.
4. Consider Prepay Options
5/4/3/2/1 prepay structure often beats no-prepay options by 25-50bps.
Action Items
- Check current rates: Get 10 Rates Now →
- Calculate your DSCR: DSCR Calculator
- Read our DSCR guide: Complete DSCR Guide
Data sourced from MoneyMatcher's network of 2,070+ private lenders. Last updated January 2026.